End of the week in the red for the European stock exchanges despite the fact that oil has resumed its upward path. But there are new warning signs about the state of the economy from the composite PMI index. Piazza Affari falls by 1,50%, much more than the other markets: Paris -1,04%. Frankfurt –0,47% and Madrid -0,2%. London loses 1,2%. Wall Street futures are also down a few hours after the release of the US jobs data.
Of note is the Swedish H&M, the second largest clothing chain on the planet today +4,26% despite a 46% drop in sales in March after announcing a robust cost cut. Air France-KLM is in talks with banks to receive loans worth billions of euros guaranteed by the French and Dutch governments,
North Sea Brent crude is up 10% to $33,2 a barrel, from +21% yesterday. On these prices, the week would close with a rise of 31%, after five consecutive weeks of decline. There will be a conference call between representatives of OPEC countries + Russia on Monday, but other countries may also join, perhaps even the United States. Meanwhile, Moscow is reviewing the state budget, updating the forecasts of expenditure, revenue and needs, at an oil price of around 20 dollars a barrel. In Piazza Affari Eni retraces -4%, Saipem +1,8%.
The survey on the state of health of the Eurozone in March, already in full emergency for the Covid-19, collapsed to 29,7 points from 51,6 in February. In particular, the services index collapsed to 26,4 points (against 52,6 points in the previous month). "The data shows an annualized rate of contraction in the economy of approximately 10% and will inevitably get worse in the foreseeable future," said Chris Williamson, head of IHS Markit. The yield of the BTP rises to 1,54% (+ 3 basis points). The spread is little moved at 192 points.
Yesterday saw the light of Sure (acronym for Support to mitigate unemployment risks in emergency), a European fund against unemployment which through 25 billion of voluntary guarantees from the States will make it possible to finance national redundancy funds or similar job protection schemes. The fund will raise resources on the markets by issuing triple A bonds, therefore at very low rates, which it will then give to countries that need them with long-term maturities. "With this new solidarity instrument we will mobilize one hundred billion to keep people in their jobs and support businesses," said Commission President Ursula von der Leyen.
In view of Tuesday's Eurogroup, new intervention tools are being studied. In addition to the strengthened credit lines, the State-saving fund is working on new rapid financing tailored to emergencies such as the pandemic, with fewer controls and an endowment of 80 billion. The euro weakened for the fifth consecutive day to 1,080. In the business square Atlantia accelerates again with a gain of 7,5%.
This morning Bofa Merrill Lynch promoted the judgment from Hold to Buy by setting a target price of 20 euros. In recent days, rumors of a possible agreement between the company and the government on the issue of concessions have intensified. The proposal under discussion provides for a 5% cut in tariffs, the payment of compensation of around 2 billion euros and the drop of Aspi to around 40% (from the current 88%) with CDP and F2i which would acquire equal shares .
Leonardo also stands out +6%. Nexi +2%. Banks and managed assets hold back: Intesa -2,7%; Jefferies raises the judgment to Hold. Unicredit -3%. Poste Italiane instead recovers +1,4%. The European insurance regulator, EIOPA, has taken a tough stance on dividends: they need to be postponed or reviewed. Unipol -3,3%, decided to cancel the coupon payment proposal, equal to 0,28 euros.
UnipolSai +0,27%, confirmed the 2019 dividend (€0,16). Generali has yet to make a decision on the announced dividend (0,96 euros). Deutsche Bank raised the target price of Snam -3,7%, Terna -1,3% and Italgas. Enel has increased its stake in Enel Americas, reaching 65%.
Worth noting:
- Marr. The board of directors halved the proposed dividend.
- Campari is negotiating the purchase of a French vermouth producer, Dolin while Masi Agricola has expanded its product portfolio with the addition of two white wines positioned in the premium sector. Let's console ourselves with a toast.
