Liquidity abounds, opportunities for good investments are lacking. Amazon takes advantage of it, which yesterday placed a three-year bond worth 10 billion dollars at 0,4%, only two tenths of a point above Treasuries. Demand was very high, three times the supply, for one of the few companies to have benefited from the Covid-19, which supported home sales. The rain of liquids, however, remains for now the only effective measure to guide the world towards recovery, for now more desired than real. But the markets believe it, despite the climate of war in US cities which, all in all, may favor Donald Trump: pending the recovery of the economy, the Law & Order recipe can give the President's election campaign a boost. Stock exchanges, contrasted but positive, reflect the climate of uncertainty.
ASIA RISES, CHINA NO LONGER BUYS AMERICAN SOY
China's stock markets are down slightly, while almost everything else is up: the Dow Jones Asia index gains 0,7%.
Hong Kong's Hang Seng climbed 0,3%. The city authorities have ordered that, due to the pandemic, there will be no public commemorations of the crackdown in Tiananmen Square this year. To US protests over the new security law wanted by President Xi, the Beijing Foreign Ministry responded with a tweet: "I can't breathe", the last words of George Floyd, a victim of the police in Minneapolis.
Beijing then decided to suspend purchases of US soybeans already envisaged in the January agreements between the superpowers.
The Dow Jones Asia index gains 0,7%. Tokyo's Nikkei climbed 1,1%. Between today and tomorrow, all ten Apple stores in Japan will be reopened.
Seoul's Kospi climbed 0,7%. Mumbai to the fifth consecutive session of increase: +1%.
WORLD STOCK EXCHANGE INDEX HAS BEEN UP FOR SEVEN DAYS
The MSCI World index, the super-index of world stock exchanges, could reach the seventh consecutive day of gains, after having gained 36% from the lows of mid-March: only 11% missing from the all-time high reached in the first part of February.
WTI oil is up slightly, at 35,6 dollars a barrel. Brent is also good. In Milan, Eni rose by 1,5%, Tenaris +3,1%, Saipem +3%.
Wall Street's S&P 500 future is down 0,5%. The benchmark US stock market gained 0,4% yesterday evening, as did the Dow Jones. NASDAQ +0,66%.
Wal-Mart and Target are losing blows for the riots affecting US cities. On the other hand, the Ism index signals the gradual recovery of the economy.
Only the pharma sector is in red: the results of Gilead's research on Covid-19 are disappointing; Pfizer thud after the flop of a new anticancer remedy.
THE BAGS ARE HOPE IN THE ECB. MILAN AT THE TOP FROM 10 MARCH
A positive start is expected for European lists, even if the recovery engine is struggling to rev up, as emerges from the PMI indices, still well below the 50-point threshold that separates growth from recession. But the European Stock Exchanges, already tuned to the next session of the ECB directorate, continue to grind sessions with the plus sign. Starting from Piazza Affari, which, despite the public holiday (and the closed banks), promises to continue Mediobanca's hot spring.
Milan (+1,79%) was awarded the pink jersey at the beginning of June, reaching 18.523 points, the highest since 10 March.
The German and Swiss stock exchanges closed for Pentecost, as well as Denmark and Norway. Paris holds, thanks to the rebound of the four-wheeler shares: Psa +4,51%; even +6,11% for Renault.
KKR BUYS MASMOVIL AND CHARGES ALL THE TLC
In Madrid (+1,74%) Masmovil jumped by 2 1% after the friendly offer by private equity firms KKR, Cinven and Providence to take over the telecommunications company. The takeover bid of 2,96 billion gave wings to the rest of the telecommunications companies, including Tim (+2,87%).
In London (+1,53%) a shot in the arm for HSBC (+2,78%) under the pressure of the US-China confrontation on Hong Kong.
Associated British Food, parent company of Primark, climbed around 8% after announcing plans to reopen all 153 stores in England on 15 June.
CONFINDUSTRIA: “SLOW RECOVERY” OF PRODUCTION
Italian industrial production recovered in May with the country's gradual exit from the lockdown, but remains far from last year's levels, according to the rapid survey by the Confindustria Study Center.
For May, the CSC sees a cyclical rebound of 31,4% of production, which however records a -33,8% over the year. "Should the slow recovery in demand continue in June as well, on average in the second quarter there would still be a reduction of more than 20% in activity, almost three times the dynamics recorded at the beginning of the year", with a negative contribution of around 5 points percentages of the decline in GDP in the second quarter.
THE SPREAD DOWN TO 183 (LOWEST SINCE MARCH 27)
In view of Thursday's ECB directorate, the secondary market for BTPs is pushing to a new high since the end of March. The yield premium between the Italian 2030-year April 183 and the German counterpart narrows to 27 basis points (a negative record since March 185) to close at 194 compared to 1,45 on Friday evening. The yield of the ten-year BTP falls to XNUMX%.
The reopening for a total of 1,45 billion dedicated to specialist operators of the medium and long-term auction on Friday on 5 and 10-year BTPs and Ccteu was deserted.
MEDIOBANCA REGINA IN PIAZZA AFFARI, FOLLOWING GENERALI
Banks protagonists yesterday in Milan. Mediobanca stands out, which despite the rocketing start (first prices in double digits) reduces the start-of-session earnings to +7,4% after the announcement that Leonardo Del Vecchio's Delfin has asked the ECB for authorization to exceed the threshold by 10% in the Investment Bank and go up to 20%.
Generali is leading the way (+3,4%), in which Piazzetta Cuccia holds 13% of the capital. According to Equita, "the intervention increases the uncertainty on Mediobanca's industrial plan and, in the future, also on that of Generali, but Delfin's request to rise to 20% creates strong support for the share which, in our opinion, remains interesting from the point of view fundamentally".
BANKS IN RALLY, RUNS BPM
The FTSE Italian Banks index made a big splash, gaining 2%, reaching its highest level since the end of March at 6.320 points. Banca Bpm (+6,52%) runs ahead of Unicredit (+3,13%), Bper (+2,47%). The duelists Ubi (+2,44%) and Intesa Sanpaolo (+1,78%) also rose. Mps also consolidates its recovery (+2%).
SALE LEONARDO, COMAU (FCA) TOWARDS THE IPO
Among the industrialists runs Leonardo (+5%) on the wave of rumors according to which the Italian government is deciding to authorize military contracts with Egypt worth several billion dollars.
FCA (+3,51%) has announced that Paolo Carmassi has been appointed CEO of Comau, in view of the listing on the Stock Exchange. Alessandro Nasi will instead assume the role of president of the company. After the merger with PSA, Comau's stake will be distributed to the shareholders of the new group.
In May, according to data released by the Ministry of Transport, 99.711 cars were registered in Italy: -49,6% compared to a year ago. Fly Cnh Industrial (+6,49%).
DIASORIN IS BREAKING DOWN, BUT THE BEST TITLE OF 2020 REMAINS
Atlantia (+4,2%) and Autogrill (+2,9%) did well in view of the reopening of travel between regions on 3 June and, therefore, in view of an increase in motorway traffic.
On the opposite front, profit-taking has started on Diasorin (-3,7%), so far the best blue chip of the FtseMib since the beginning of the year with a +57%. Only four other companies are in positive territory in 2020: Nexi +19%, Recordati +9%, Ferrari +3% and Terna +2%.
TREVI AND PININFARINA TORN, CATHOLIC COLLAPSES
Strappa Trevi Finanziaria (+30,8%), which concluded the capital increase and approved the 2019 financial statements.
Ideas also on Pininfarina, suspended upwards, with a leap that exceeds 10%.
Cattolica Assicurazioni falls: -16,8%. After considering the capital increase requested by IVASS from 500 million, two thirds of its capitalization, Equita has cut the target price to 3,7 euros (hold confirmed) and does not exclude that the operation could lead to reflections on the governance of the company, from which the former CEO has resigned Alberto Minali who had attracted the entry of Warren Buffett.
