The war continues to dominate the market scenarios, but in Piazza Affari the spotlights continue to be focused on Tim and Generali, the two great challenges of Italian finance.
Tim signed a confidentiality agreement with CDP Equity on Saturday to start preliminary discussions on the possible integration of its network with that of Open Fiber. And Kkr makes it known: without due diligence, no takeover bid.
As for Generali, Morningstar cut its recommendation to Sell, with a target price of 18,60 euros. Consob has not identified "violations of disclosure obligations" by Francesco Gaetano Caltagirone, Leonardo Del Vecchio and the Crt Foundation, the three former pact holders of approximately 20% of the Leone, and who with all the weight of the 6,5 billion invested they will vote against the renewal of CEO Philippe Donnet at the meeting on 29 April.
Elon Musk targets Twitter
Meanwhile, Wall Street was shaken yesterday by the latest venture by Elon Musk: the king of Tesla has invested 2,89 billion dollars (peanuts for him that is worth 300 billion) to become Twitter's largest shareholder with 9,2%, a move that the market greeted with an increase of 27,12%. And, so as not to deny his fame, Musk was preceded by a series of tweets from which, even before the confirmation of his purchases, the will to change the fate of social networks emerges. “Do you think of a new platform where freedom of speech takes priority?”, He asked himself to answer: “Yes, I'm thinking about it”.
Morgan Stanley warns: the Bear market is about to return
It's not the only news coming from Big US business. Worth noting is the drop in Starbucks: -3,72% after Howard Schultz returned to lead the coffee chain. announced the withdrawal of the buyback: the money already allocated to shareholders will be used to increase employee wages. An initial response to the birth of unions, already harshly opposed both in Starbuck and in Amazon. War seems far from Wall Street, even if Jamie Dimon of JP Morgan warns the Fed of the risk of volatility and Morgan Stanley warns: the bear market rise is over, wait for new falls.
Wall Street futures are little moved. Yesterday, the Nasdaq closed up 1,9%, the S&P500 up 0,8%. Dow Jones +0,3%.
With the Chinese stock exchanges closed, Sydney is waiting for rate decisions
Little story this morning on Asian price lists. Asia Pacific stocks were mixed at the end of a session conditioned by the holiday closures of stock markets in Hong Kong, Shanghai, Shenzen and Taipei.
The Nikkei of Tokyo (-0,5%) and the Kospi of Seoul (-0,1%) were weak. The Sydney Stock Exchange rose (+0,5%), awaiting the decisions on rates by the Central Bank.
On the currency front, the yen and South Korean won are appreciating in Asia.
Oil in tension, Brent at 108,7 dollars.
Even in Europe, the price lists have moved upwards, ignoring everything concerning the war in Ukraine, the atrocities denounced by Kiev and rejected by Moscow, the usual debate between Europeans on sanctions and the situation on the military field.
Attention is focused on the possible developments of the sanctions. This morning WTI crude trades at 104 dollars, +1%, yesterday closing +4%. Brent $108,7.
Of note for the Guinness Book of Records is the rise of inflation in Turkey: +61%, the highest since 2007.
Towards a stop to oil in Moscow, but not to gas
"We must do more to stop these atrocities", was the appeal launched by EU Vice-President Valdis Dombroskis before the meeting of finance ministers in Luxembourg. “The Commission – he adds – is already preparing the next package of sanctions. I hope that the member states are able to approve the next ambitious efforts”. Including the ban on oil purchases? "As far as the Commission is concerned, nothing is out of the question", is the position of the politician from Lithuania, the only country that has completely closed relations with Russia.
But, beyond the emotion for the Bucha massacres, Europe remains divided. German Finance Minister Christian Lindner hopes that the EU will close "all ties with Moscow as soon as possible", but points out that the simultaneous blockade of gas, oil and coal would also damage Europe. Gas, in particular, could remain out of the embargo.
Investor morale on the ground, Sentix collapses
The uncertainty of states, combined with the race in prices, is reflected in the morale of the markets: the Sentix index, which measures investor morale, collapses to a two-year low of -18 (from -7 in March). And no one is deluded that the ECB has large margins of intervention. Indeed, the publication of the minutes of the last meeting, scheduled for Thursday, could bring out a more robust hawkish front than imagined.
Holland allies with Spain. Stability Pact to be redone
Holland changes course and inaugurates an unprecedented axis with Spain. The two countries presented a proposal to the Eurogroup to reform the fiscal rules. There are two essential requests: change the rule of the twentieth (ie the obligation to reduce excess debt by one twentieth every year) and opt for specific objectives for each country. Each State must be able to reduce the debt according to its own situation without bringing the economy to its knees. At this point one seems more credible reform of the Stability Pact, also because the discussion is accompanied by the idea of a new Recovery for energy and defence.
The spread rises to 155 points, the euro is falling
The Italian secondary closed in the red, where the spread between 10-year BTPs and Bunds of the same duration rose to 155 basis points (+0,9%) with yields of +2,07% and +0,52% respectively.
The risk that the sanctions could hit the Eurozone like a boomerang is reflected in the euro, back below 1,10 against the dollar.
Piazza Affari flat, the other price lists go up
The worst stock exchange is Piazza Affari, which remains practically unchanged +0,05%. The queen square is Amsterdam, +1,3%, in the wake of US big tech. Paris +0,7%, Frankfurt +0,5%, London +0,27%, Madrid +0,17%. The best title was the French defense giant Thales +3,02%
Roche climbs 3,13% after the Food and Drug Administration grants priority review to its drug for the treatment of Covid-19 in hospitalized adults.
Novartis gained 1,40% after announcing plans to integrate its pharmaceutical and oncology businesses into an innovative medicines division, aiming for savings of at least $1 billion by 2024.
Ubs pushes the red and promotes down jackets
Ferrari darts by (+5%) on the push of Ubs, which raised the target price of the share to 263 euros (against 260). Stellantis was also positive (+0,66%) despite the new decline in registrations.
Moncler is also extending its pace (+3,77%), which on 31 March appointed Maria Sharapova, tennis champion and influencer, to the board of directors. Ubs has raised the share target to 68,5 euros (from 68).
On the contrary, Kepler cuts Ferragamo back: -3%, target at 15 euros (from 19.5).
Leonardo flies by helicopter, Bpm is the only bank with the plus sign
Leonardo is up (+2,7%), driven both by the good indications of analysts after the helicopter order announced last Friday, and by the high exposure to the defense and cybersecurity sectors, well suited to the news on the war front in Ukraine.
Finally, a leap forward by Banco Bpm (+2,14%), the only credit title to close in positive territory. Snam -2,5%. Citi cuts to Sell, target price at 4,50 euros. Marco Alverà leaves the leadership of the company after two mandates. Hera's CEO, Stefano Venier, will take his place.
