European stock exchanges opened in the red following the summit of EU heads of state. The lack of more precise indications weighs heavily on the recovery fund but also the disappointment for the negative result of the tests on remdesivir, the Gilead drug -4% which had raised many hopes in the fight against the coronavirus. But Milano -0,28%, supported by the positive futures of the US Stock Exchanges, is the market least affected by the downturn: worse Paris -0,4% Madrid -0,85%. Negative too London -0,4%. Frankfurt -0,45%. In April, the indicator elaborated by the Ifo study center fell to 74,3 points, a clear decrease compared to 86,1 in March, marking a new all-time low. “The coronavirus crisis has hit the German economy with full force,” the German institute said.
EU Industry Commissioner Thierry Breton updated the crisis data this morning. “To date – he said – in the European Union, we are en route to a 5-10% (recession), or about 7,5%. But that's the way it is today, and if things don't improve and we have a second peak (of the epidemic), things could get worse." For Italy, judging by the Def, the data is even worse: – 8% GDP, public debt at 155,7%. The market awaits the verdict on the rating of S&P: for Commerzbank Italy will escape the downgrade. Last night Moody's said it considered the impact of the coronavirus on the Italian macroeconomic situation to be temporary: creditworthiness should not change, as long as there is a recovery from the third quarter, the cost of funding remains low and debt goes back down. The agency will express its opinion on the Italian debt on May 8 together with DBRS.
The BTP trades at a 1,95% yield, -3 basis points. Bund at -0,47% -3 basis points.
With the price of flocksor still sharply down (Wti June -4,36% to 15,78 dollars a barrel and Brent -2,25% to 20,85 dollars a barrel) Eni +0,5%. “It is still too early to give indications on the dividend, to say what we will do. The time hasn't come yet. Let's see where the situation will be with regard to the Covid-19 emergency in a couple of months ". This was stated by the CEO of Eni, Claudio Descalzi, responding to analysts. The company closes the first quarter with an adjusted operating profit of 1,3 billion euros, 200 million euros more than consensus expectations, the net result however is lower than expectations due to write-downs. Below Saipem -0,27% and Tenaris -0,99%.
Fold back, after the gains of the last few days, Atlantia -0,6%
Unicredit -1,7% would be considering the possibility of selling or reorganizing the digital payments business. Nexi is working with INPS to develop systems capable of helping banks to disburse the 600 euro bonus provided by Cura Italia.
In asset management. Azimuth +1%, it will close 2020 with a net profit of 300 million euros, well beyond consensus expectations, says the president of the company. General Bank -0,78%. The shareholders' meeting voted in favor of the dividend proposed by the board, to be paid between October 15 and the end of the year.
Fiat Chrysler -0,5%. The union most followed among the group's employees in the United States opposes the plan to reopen the factories.
Desole Tim -1%. The meeting approved all the proposals of the board of directors, including the distribution of the dividend and the incentive plan, confirming Salvatore Rossi as president. The Board was updated on the progress of the JV project with Kkr to manage the secondary network and develop fiber connections. The activities, preparatory to sending a binding offer, continue regularly.
