“We are close. Or maybe we're already there." Jerome Powell thus cautiously letting it be known that, after ten consecutive rate hikes, he does not envisage a new adjustment at the June meeting. The markets take note of it but do not celebrate. First, because the Fed chairman considers a cut in the cost of money in 2023 "very unlikely". Above all, however, because at the same time as Powell's words, yet another banking crisis: Pacwest Bancorp, a Los Angeles bank, leaves 60% on the ground pending a bailout that could take place as early as today. In short, together with the increase in interest rates, the most robust since the XNUMXs, the economy must face an ever deeper tightening of bank loans.
Flat Europe waiting for Lagarde
The markets, having taken note of the Fed's moves, are now awaiting the decisions of the ECB. At the opening, the European stock exchanges move below parity: Milan -0,66% Paris -0,47% Frankfurt -0,51% and Madrid -0,63%.
At 14.15 the ECB it should announce a quarter point increase in deposit rates, to 3,25%, even though many investment houses, including JP Morgan, are betting on half a point.
At 14.45 the president Christine Lagarde he will answer journalists' questions: in addition to future increases, the focus of the meeting will be on the return of funds made available by the ECB in recent years. According to SocGen, Italian banks, one third exposed, are not in a position to meet the commitment.
Italy, the unemployed under 2 million
The banks though yesterday they led the rebound by Milan +0,77% after two negative sessions. The Milan stock exchange rebounds after two consecutive sessions of decline.
In Italy, there are 1,98 million people looking for work, the minimum since November 2022.
Pending the decisions of Frankfurt, the ten-year Bund restarts from 2,24%, the Btp 4,13%.
the cross euro dollar it reaches its highest since March 2022 at 1,108.
Banks make Wall Street suffer
Closing in the red last night at Wall Street: Nasdaq lost 0,5%, S & P 500-0,7%.
Futures anticipate a start up 0,3%.
PacWest Bancorp announces this morning that it has started discussions with investors and possible partners who have come forward with strategic proposals in the last few days.
The 3,33-year Treasury Note strengthened in view of the economic slowdown caused by the two concomitant tightenings, the monetary and the banking one, its yield fell to 3,42%, from XNUMX% the day before.
White House Summit on Artificial Intelligence
The CEOs of Anthropic, Google, Microsoft and OpenAI will meet with US Vice President Kamala Harris and other Biden administration officials today to discuss the impact of artificial intelligence.
China also relies on tourism, holding back manufacturing
Asia Pacific stocks are mixed. L'Groin Bed Hong Kong is up 1%. CSI300 of the Shanghai and Shenzen lists slightly down.
The Caixin PMI unexpectedly fell to 49,5 last month, a sign of loss of momentum in the industrial sector. Manufacturing is not pulling but services are: Reuters reports that during the recent holidays, car traffic has increased year-on-year by 70%, a leap mainly due to domestic tourism.
Il Kospi of Seoul loses 0,4%, on parity the BSE sensex of Mumbai. The Tokyo financial market is also closed today.
Gold at the top, gas and oil in decline
The decline in the dollar and in bond yields brings the , this morning at $2.040, just a whisker away from all-time highs.
Il Petroleum WTI, yesterday in its third session of sharp declines, is this morning at 68,7 dollars a barrel, prices not seen since the end of 2021.
The Bloomberg Commodity Index slipped yesterday to its lowest since January 2020, gas US and European natural gas prices have halved since the beginning of the year, on new 14-month lows, but the EIA estimates that the price could soon recover because the increase in demand for natural gas in Asia and the Middle East is destined to offset the decline in other regions this year.
Tim, board of directors on the network. Enel and Leonardo confirm the guidance
At 14 Tim's board of directors meets (-1,29%) for respond to both offers arrived for the fixed network of the telephone company, in the crosshairs of the main shareholder Vivendi for the relaunch strategy launched by the CEO Pietro Labriola.
Unicredit (+0,25%). Buying own shares is the best way to use the bank's money and no M&A transaction can be a valid alternative. This was stated by CEO Andrea Orcel in a call with journalists after the bank announced yesterday morning above-expected quarterly results.
For Enel (-0,8%), increasing profits and decreasing revenues in the first quarter, with ordinary Ebitda at 5,46 billion euros (+21,8%). Guidance for 2023 confirmed. The company has already closed or announced more than 50% of the 21 billion disposal plan. Goldman Sachs slightly adjusts the target price to 7,20 euros, it was 7,15 euros.
Leonardo (-4,06%) archive the first quarter with declining profit but confirms the guidance for 2023. Ebit slightly lower than expected due to a lower contribution from joint ventures. Orders are growing, rising more than the consensus. Cash generation was very positive.
Poste Italiane (+ 0,07%) closes the quarter with Ebit of 767 million euros, +690% from 2022 million in the first quarter of 11. The consensus was 712 million euros. The increase, explains the company in a note, was supported by all businesses with the payments and mobile segments contributing the most. Invested financial assets amount to 579 billion and in the quarter Poste Italiane achieved net inflows of 500 million on savings and investment products. Matteo Del Fante, CEO and General Manager says that “the solid results of the beginning of the year position us very well to achieve our goals for 2023”.
sapphire. Net sales in the first quarter remained substantially stable at €287,2 million (-0,4% at constant exchange rates).
