A huge iceberg, caused by the warming of the Arctic, has detached from the polar cap and is heading for North America. It looks like the opening scene of a film, but it is what is happening in reality, as part of a somewhat surreal chronicle. Donald Trump has decided to denounce the Paris climate agreement signed by 195 countries. The US finds itself in the company of Syria and Nicaragua, the only countries that have not joined the agreement to curb climate change.
The hard line of the hawkish Stephen Bannon, theorist of America First, prevailed: the treaty signed by Barack Obama, according to the president, is not convenient for the USA which will now negotiate an agreement on their own which "must take into account the interests of the USA, the its workers, its taxpayers and its business”. There will be no new agreements, was the immediate response of China and Germany.
AFTER THE TEAR ON THE CLIMATE, THE RUSSIAGATE COMES ON AGAIN
Thus the distance between the two sides of the Atlantic widens. Meanwhile, Russiagate promises other scenes worthy of a Hollywood fiction. Next Thursday, former FBI chief William Comey will testify in Congress. And the British Guardian launches sensational news: Nigel Farage, the protagonist of Brexit, will be called to testify as a witness in the FBI investigation which wants to see clearly the connection between the UKIP leader, Donald Trump, and Julian Assange, the Wikileaks animator, responsible for the theft of Democratic party emails during the election.
MSCI GLOBAL INDEX AT HIGH, TOKYO +1%
The financial markets show, for now, lack of interest in the evolution of a disturbing picture. In fact, the season of records for stock exchanges continues. The MSCI index (+0,5%) based on the performance of 46 markets around the world, this morning reached an all-time record. The Asian stock exchanges (+0,6%), driven by the good performance of the South Korean market, mark the maximum in the last two years. Japan shines (+1%), for the first time since August 2015 beyond the threshold of 20 thousand points.
THE US LABOR MARKET IS GROWING AGAIN. SALT WALL STREET
The US stock markets also closed up yesterday evening: Dow Jones +0,65%, S&P 500 +0,76%, Nasdaq +0,78% at 6.246,83. While awaiting today's data on the labor market, very positive numbers are arriving: in May private sector companies increased the total number of employees by 253 (Adp data), better than the economists' forecasts which on average indicated 180 new jobs Work. In April, the growth had been 174 new jobs.
The chances of a quarter point increase in rates at the Fed meeting on June 13-14 are growing: this is the opinion of 88% of the panel of experts. John Deere shines, up 1,8% after announcing the acquisition for 4,88 billion dollars of the unlisted German company Wirtgen Group, one of the world leaders in road construction machinery. Heavy fall of Hewlett Packard: -6.9% after the disappointing results of the quarter.
Oil stable after the slight drop in inventories: Wti at 48,36 dollars, Brent down to 50,46 dollars a barrel. At Piazza Affari Eni +1,2%, Saipem -0,5%. The two companies have signed various contracts for offshore drilling: in Mozambique, with a duration of 15 months which can be extended to a maximum of 45; in the Mediterranean (Portugal and Cyprus) and in the Black Sea for a total value of 230 million dollars. Tenaris +1,1%.
FCA SUPERSTAR IN THE USA, +6,8% SALES IN ITALY
The best sector, in the USA as in Europe, was the automotive sector. On Wall Street, the sub-fund recorded an increase of 1,6% after the good sales figures in May. Ford climbs 3,1%, General Motors +2,1%, Tesla +0,2%.
Best of all, however, Fiat Chrysler did it, which scored a jump of 5% after the better-than-expected data on sales in May in the US, which fell only 1% compared to forecasts of -3,9%. With the markets closed, the data on sales in Italy were released: the group (Alfa Romeo, Chrysler/Jeep/Dodge, Fiat and Lancia) saw an increase in registrations in May of 6,8%, to 59.844 vehicles, with a share of market by 29,32%. Cnh Industrial +1,2%.
In general, May was positive for all the car manufacturers present in North America: BMW rose by 2,3% on the Frankfurt Stock Exchange, Volkswagen +1,7%. “Very bad news” for President Trump.
THE RISE OF THE GDP PUSHES MILAN BEYOND 21 THOUSAND POINTS
The recovery of the European manufacturing industry is in full swing. In May, the Eurozone PMI closed at 57 points, the best result since April 2011. The FtseMib index rose by 0,99% to 20.936 points after hitting a high of 21.007. More contained rises for the Paris (+0,7%) and Frankfurt (+0,4%) stock exchanges. London hit a new record during the session.
In short, a day of brilliant bullishness for the Milan Stock Exchange, which celebrated the surprising data on the growth of the Italian economy: Istat revised its GDP estimate upwards for the first quarter, bringing the figure to +1,2% over the same period of 2016, from +0,8% in the first survey. The first quarter of 2017 had two working days more than both the previous quarter and the first quarter of 2016.
Meanwhile, the government has asked the European Commission for a discount of around 8,5 billion on the 2018 correction, reducing the structural balance adjustment target to 0,3 from the 0,8% indicated in April. If Brussels accepts the request, the resources to be found to meet the new budget targets and defuse the increase in VAT and excise duties would drop from 15-16 to around 6-7 billion. The correction, albeit small, "is nonetheless a substantial effort which will make it possible to further reduce the nominal deficit and ensure a decline in the debt/GDP ratio", writes Minister Pier Carlo Padoan.
TENSION ON THE BTP. TOWARDS THE ANTICIPATION OF THE NEW THIRTY YEARS
After Wednesday's partial recovery, the Italian secondary closed a down session yesterday, marked by political uncertainty and Spanish auctions. Excellent performance by Portugal, with the 3,00-year rate returning to the 196% area for the first time since last September. The good data on GDP in the first quarter was not enough to push Italian securities: the spread with Germany returned to new highs since the beginning of May, reaching XNUMX basis points.
The hypothesis of a new 4,14-year syndication agreement anticipated at the beginning of the summer also looms over Italian fixed income: it was thought that the Treasury would only move in September, but the prospect of early voting imposes tighter deadlines. Spain, on the other hand, yesterday placed 2021 billion euros in government bonds maturing in 2066 and 500, plus 2030 million in inflation-linked bonds maturing in 69. to 66 basis points from the previous XNUMX.
DE PUYFONTAINE, FIRST NON-ITALIAN PRESIDENT IN TELECOM
The CEO of Vivendi, Arnaud De Puyfontaine, became president of Telecom Italia (+0,1%). The current president, Giuseppe Recchi, moves to the vice-presidency and collects the trust of De Puyfontaine (voted by 10 out of 15 directors) together with Tim's CEO, Flavio Cattaneo. De Puyfontaine obtains the same powers as Recchi excluding the supervision of security and TI Sparkle. The three make up the strategic committee together with Dario Frigerio and Franco Bernabé, who has been leading the independent directors since yesterday. Citigroup raises the target price of the stock from 0,6 to 0,7 euro after having increased its EBITDA estimates by 3,3%.
The question mark remains on Mediaset's shareholding, equal to 29,9% of voting rights (+0,40%) which, according to the AgCom resolution, is in conflict with that of Tim. Vivendi itself has already announced an appeal to the Tar, which should arrive shortly, because the European Union was awaited to proceed.
ATLANTIA LEADS THE CHARGE OF UTILITIES
Enel advances (+0,5%). The network operator Open Fiber, controlled by Enel and Cassa Depositi e Prestiti, is accelerating the installation of the fiber optic telephone network and expects 2,2 million housing units to be covered by the end of the year and 3,8 million by 2018.
Italgas also did very well (+1,53% to 4,784 euros). The stock has received a series of promotions after the 2017-2023 plan: Deutsche Bank increases its target to 3,7 to 4,3 euros (hold), Mediobanca Securities from 4,65 to 5 euros (outperform), Kepler Cheuvreux from 4,8 5,1 to 4,8 euros (buy) and Banca Imi from 5,3 to XNUMX euros (add).
Strong rise by Atlantia (+3,4% to 25,70 euros, new historical record). According to the president of Abertis, Salvador Alemany, it is unlikely that the Spanish government will decide to oppose Atlantia's takeover bid. Alemany also said he believes the market will decide to accept the offer.
Clear road, apparently, also for the obstacle Cellnex, a company controlled with 34% by Abertis which manages transmission towers. In order not to incur the obligation of a cascade takeover bid, Atlantia, if the operation goes through, must fall below 30%, selling at least 4,1%. It seems that some American companies are interested in discussing a possible share purchase.
EU GREEN DISC ON MPS, SOS FROM THE VENETIES TO THE TREASURE
The European Commission has announced that it has reached an agreement in principle with Italy for the precautionary recapitalization of Banca MPS, which provides for a severe restructuring plan, a cap on managers' salaries and burden sharing for shareholders and subordinated bondholders. MPS, the official note explains, "will sell its entire portfolio of non-performing loans at market conditions, to reduce the risks on its balance sheet", a 26 billion euro operation for which the Bank announced last Monday an exclusive negotiation with Atlante and other investors until 28 June.
"To the extent that a dossier closes, there's probably more room to work on ours." The CEO of Popolare Vicenza Fabrizio Viola commented on the news of the agreement between the government and the EU Commission on the restructuring of Monte. Pop. Vicenza and Veneto Banca have sent a letter to the Treasury, requesting a quick solution for the rescue of the two institutions. Regarding the possible participation of private equity funds in the additional private capital necessary to obtain state aid, Viola confirmed limited to answering "it's a hypothesis".
INTESA SELLS BAD LOANS, UNICREDIT GOES ON TOUR
Highlights on the Banco Bpm (+3,17%) and Bper (+2,11%) price lists. Intesa rose by 0,9%: the Bank signed an agreement to sell a portfolio of non-performing loans with a nominal value of 2 billion euro to Christofferson Robb & Company (Crc) and Bayview at a price in line with the net value credit balance sheet.
Down Unicredit (-0,7%). The bank led by Jean-Pierre Mustier has reached an agreement with Bank Pekao for the sale of some equity investments for a total of 142 million euros. The institute has also mandated BofA Merrill Lynch, Citi, HSBC, JP Morgan, SGCib and UniCredit to organize a series of meetings with investors in the USA, Canada and Asia from 5 June.
FINCANTIERI AND TECHNOGYM HOLD BACK, EXPRIVIA AND FALCK FLY
Fincantieri declined sharply (-3,10%) after the French president Emmanuel Macron, ten days after the vote for the legislative elections, announced his intention to revise the contract for the sale of the majority of the Stx shipyards in Saint Nazaire to the Italian group.
Going against the trend of the Automotive sector (+1,6% for the European Stoxx), Brembo loses 1,2%: the negative echo continues from the sale of a 3% stake by Alberto Bombassei.
Falck Renewables finished up 4,5% at €1,254, its highest price in two years. Through its subsidiary Geopower Sardegna, the group renegotiated the 168,1 million euro Project Financing loan agreement, adding a further 26,9 million, for a total of 195 million euro.
Technogym (-5%, at 7,01 euros) was the worst stock on Piazza Affari. The controlling shareholder, Wellness Holding, announces that it has successfully completed the sale of a total of 16.000.000 Technogym ordinary shares, equal to 8% of the share capital, at a price per share of 6,90 euros, for a total value of 110,4 million. Wellness now controls 52% of the capital.
Fly Exprivia (+10%). The international Star company (neutral, target price 1,15 according to Banca Akros) has defined the terms for the acquisition of control of Italtel.
