The protests are inflaming the streets of the US metropolises and Hong Kong is preparing for the anniversary, Thursday, of the Tien-an-Men massacre. But the stock exchange of the former British colony breathes a sigh of relief: Donald Trump has not revoked the status of privileged trading partner guaranteed by the 1997 agreements, nor have other restrictive measures materialized so far.
The Hang Seng Index is up 3% this morning; the markets of Shanghai and Shenzhen also rose sharply, up by 2%.
The authorities in Wuhan, where 11 million people have been swabbed in the last two weeks, said yesterday that not a single asymptomatic was found.
CHINA TRY TO START AGAIN, TOKYO RISES
Post-pandemic production in China is recovering but with difficulty. The official index of manufacturing activity fell in May, but the one elaborated by the private company Caixin, focused on small and medium-sized companies active mainly with foreign countries, reveals that manufacturing has returned to an expansionary phase, beyond the watershed of odds 50.
The other Asian price lists also rose. Tokyo is up 0,9%. The Korean Kospi +1,2%.
AUSTRALIA GIVES MONEY TO HOME BUYERS
Sydney is also advancing (+0,7%). The Treasury minister anticipated the arrival of further economic stimuli, while a financial newspaper reports that 20 Australian dollars (about 13.000 US dollars) will be given away to anyone who wants to buy a house.
WTI oil is little moved, at 35,5 dollars a barrel, after +7% last week. Crude oil is on its fifth consecutive week of gains. Bloomberg reports that OPEC Plus intends to extend production cuts by a couple of months.
THE PATRON OF LUXOTTUCA WANTS 20% OF MEDIOBANCA
Piazza Affari seemed destined for a seaside session, in anticipation of tomorrow's Republic Day. But let the waters ease the waters, Leonardo Del Vecchio took care of it on Friday evening. The king of eyewear has requested authorization from the ECB, through the Bank of Italy, ad increase stake in the institution in Mediobanca from the current 9,9 to 20%. It will be up to the supervision of the central bank, governed by the Italian Andrea Enria, to evaluate the request, assisted by consultants of the caliber of the former minister Vittorio Grilli and the lawyer Sergio Erede, within 60 working days. The decision could thus arrive in September, just on the eve of the presentation of the lists for the renewal of the board at the meeting at the end of October. Del Vecchio has already anticipated that he does not intend to present an alternative list to that of the council, but this does not rule out the outbreak of a financial war inside and outside Piazza Affari, which as of today is once again at the center of major maneuvers.
NAGEL SIDES AGAINST. GOLDEN POWER IN DISCUSSION
The real objective, moreover, is the future of Generali, of which Mediobanca controls 13% (to which must be added the 4,7% of the owner of Essilor Luxottica), lung, together with Intesa (engaged in the duel on Ubi), of finance in the Bel Paese. The king of eyewear has been pushing for a capital increase in the company with a view to creating a large international hub. But Del Vecchio will have to deal with the firm opposition of Alberto Nagel and the rest of the management, who have no intention of giving up the role of public company conquered in recent years to end up under the control of Dolfin, Del Vecchio's Luxembourg company, a 84-year-old gentleman who boasts six heirs (fruit of three different marriages). Even more insidious is the hostility of the political world, which could culminate in the extension of golden power to the Mediobanca-Generali financial hub as well.
CATHOLIC IN THE SIGHT OF IVASS
Spotlights too on Cattolica Insurance. The board of directors of the company met urgently yesterday after the letter in which Ivass, the insurance supervisory institute, requested that the company, a partner of Ubi, strengthen its assets with a capital increase of 500 million, equal to about 2/3 of the current capitalization of the group, which on the Stock Exchange, at the close of last Friday, was worth 757. The authority highlighted a collapse of the solvency ratio to 130% and below the minimums in the Vera Vita and Bcc Vita due to its strong exposure to BTPs.
EUROPEAN PMI INDEXES THIS MORNING
On the macro front, the publication of the European PMI manufacturing indices this morning will allow us to take stock of the recession inflicted by the pandemic on the main economies of the Old Continent. The data assumes particular importance at the start of a week which will culminate in the meeting of the awaited directorate of the ECB on Thursday.
LAGARDE PREPARES THE RISE OF THE BAZOOKA
The European Central Bank will have to decide whether or not to expand its asset purchase program in response to the pandemic. The forecast of the experts is that, despite the problems posed by the recent sentence of the German Constitutional Court, Christine Lagarde will increase interventions by at least 500-700 billion. It is probable that the purchase list will include securities that no longer enjoy a rating above the sufficiency (the so-called "fallen angels", bonds that have been downgraded by the agencies to "junk").
On the internal front, the debate on the Mes resumes its share, the only intervention envisaged by the EU which could be activated by 1 July.
Important week to avoid a no-deal Brexit. This is the objective of the meetings of the two delegations. But the forecasts are now negative.
USA Upset With Anger At The Primaries
Dollar weaker this morning. The euro trades at 1,113 (+0,3%). Wall Street futures are down slightly.
In the United States, shocked by the anger that is mounting for racial discrimination, the vote is back tomorrow: on Super Tuesday the primaries will be held in Indiana, Iowa, Maryland, Montana, New Mexico, Pennsylvania, Rhode Island, South Dakota and in the district of Columbia (Washington). The test is important both for defining the chances of Joe Biden, Donald Trump's challenger, and the possibility of holding regular elections in the time of the coronavirus.
In addition to the bank account, destined to hold court in the coming months, Piazza Affari will record the car market data tonight.
THE IPO OF WARNER MUSIC AT WALL STREET, THE TIFFANY ACCOUNTS
In this setting, Wall Street is preparing to celebrate Elon Musk after the success of Space x launchnow in orbit.
One of the most awaited IPOs is underway, that of Warner Music, one of the big five in the music market. To follow tomorrow the accounts of Tiffany, the first after the arrival of Bernard Arnault.
