The signs of a restart of the economies are multiplying almost everywhere and overshadowing the numbers of the pandemic, which is not under control. According to New York Times, the European Union could prevent US citizens from entering the EU even after July XNUMX, the day of the reopening of the external borders, as happens for Russia and Brazil. According to the European authorities, the US is not guaranteeing sufficient measures to contain the coronavirus. But the White House, despite the warning of virologist Anthony Fauci, goes straight: Treasury Secretary Steven Mnuchin said that the United States will be out of recession by the end of the year and that in July Congress will examine a new economic stimulus plan . “We will beat the Kung Flu”, thunders President Trump, reiterating that for him the responsibility lies entirely with China. Beijing does not reply, committed as it is to relaunching the economy.
Stock markets in Asia are up: Seoul +1,8%, Jakarta +1,3%. Flat Tokyo, held back by the recovery of the yen. The reference indices of Hong Kong and Shanghai moved between slight increases and slight decreases.
Wall Street futures are up. Yesterday Dow Jones +0,5% and S&P500 +0,43%. New progress and new record for the Nasdaq (+0,74%), under the impetus of Apple. Nike (+2,4%) has raised its targets on the eve of the accounts.
Bloomberg has found that so far less than 15% of the funds made available by governments have been used, directly or indirectly, through loans and guarantees. There are 2.000 billion euros of financial resources waiting to be used. The investigation reveals that in Italy of the 500 billion euros made available to the government through public guarantees on loans granted, only 37 billion euros are employed. The same in Germany, where the 1.200 billion euro fund for public guarantees on loans is almost completely unused: as of 18 June, disbursements amounted to 30 billion.
Brent oil flat at 42,5 dollars a barrel. The dollar falls, the euro rises to 1,131 driven by economic data.
AFTER THE PMI DATA, EUROPE BETS ON AV RECOVERY
Even Europe, in fact, is starting to believe in the V-shaped recovery. The boost to optimism came from the publication of the Markit PMI data on the expectations of purchasing managers of manufacturing companies. In France, in June the index rose to 52 from 40,6 in May, but the consensus was much lower, at 46. The figure for Germany was also positive, with the PMI manufacturing index at 44,6 in June , up from 36,6 in April: economists had expected 42. The euro zone PMI rises to 47 from 36 in May, while it was expected at 45. For the first time in four months, the number of companies reporting optimism has exceeded the percentage of pessimists. But Chris Williamson, chief economist at Markit, warns: "We may have to wait up to three years before eurozone GDP reaches the levels we had before the pandemic". This morning the German confidence index, the Ifo, will be released.
RECOVERY FUND, THE D-DAY SET FOR JULY 18
The President of the European Council Charles Michel has convened an extraordinary European Council on the Recovery Fund and the multiannual budget of the EU for 17 and 18 July, the first with the physical presence of the leaders since 22 February. The appointment could be decisive for the agreement on the Recovery Fund.
MILAN REVISES 20 THOUSAND QUOTA, LUXURY STARTS AGAIN IN PARIS
Milan (+2,05%) resumes the climb towards 20 points, rising to 19.878.
Also in Paris (+1,4%) the Cac index once again exceeds a historic threshold (the 5 points of the Cac 40). Lvmh runs (+3,1%), awarded by Crédit Suisse. Madrid +1,25%, London +1,23%.
WIRECARD, SHAME IN FRANKFURT
Rich notebook for Frankfurt (+2,01%). Bayer (+5,75%) will sign an agreement this week on the glyphosate-based herbicide Roundup, accused of causing cancer. The company has pledged to pay between $8 and $10 billion.
Spotlight on Wirecard after CEO Markus Braun's arrest, already released after the payment of a 5 million euro bail: the Austrian entrepreneur must explain a budget hole of 1,9 billion euro. The money, which should have been in the Philippines, cannot be found: indeed, "it does not exist". The stock rebounded 18%.
SPREAD BELOW 170 POINTS, 7 BILLION BOT AT AUCTION
After trimming gains in the early afternoon, BTPs closed not far from parity, but the 1,23-year bond went as low as XNUMX%.
The Btp-Bund spread fell to 168 basis points. The 30-year segment was also positive, while the short-term segment closed slightly down.
The Treasury will offer 7 billion 6-month BOTs at the auction on the 26th. The day before it will be the turn of the new 5-year BTPEI and the reopening of the CTZ in May 2022.
FCA, SACE LOAN READY. TOYOTA TOYS CHARGE
In Piazza Affari, Fiat Chrysler extends (+5,79%), awaiting the ok for the Sace loan. The company will commit itself to investing 5,2 billion euros in Italy, to support full employment and to avoid relocation of production lines. On Thursday, the company's representatives will appear before the Industry Committee and the assembly will be held the following day.
Acea, the association of European manufacturers, expects total sales of less than 10 million cars, the lowest since 2013. But it was Toyota that triggered the rally in the car sector throughout Europe, which revised upwards its forecasts for the month of July, from -30 to -10%. The rest of the Exor team is also on the rise (+3,24%): Ferrari +1,64%, Cnh Industrial +1,3%.
BUZZI STILL RUNS, ATLANTIA WANTS TO AVOID THE CLASH
Taurus, galvanized by good macro data, has invested a large part of the list. The industrialists are running: Buzzi +3,2%, Pirelli +2,85%, Prysmian +2,15%, Brembo +3,94%
Atlantia performed well (+2,55%) after the company's board of directors announced its willingness to continue the dialogue with the government beyond the June 30 deadline. The executive wants to close the negotiation with Aspi before the inauguration of the new Genoa bridge and has presented the company with a plan in two versions: the first which contemplates the revocation, as the M5 would like; the second with a plan of commitments in investments, reduction of tolls and compensations by the company against the maintenance of the concession. Who knows what the good version will be.
Autogrill holds (-0,08%) after the announcement of a series of agreements with lending banks for the suspension of the verification of financial parameters for 15 months.
IN RALLY MPS, SNAM DOES BUSINESS IN ABU DHABI
The banks are up sharply: Ubi +2,89%, Bpm +2,84%, Bper +2,47%. The big names are also on the rise: Unicredit +2,26%, Intesa +1,72%. Mps rally (+7,4%).
Utilities around parity. Snam (-0,39%) signed an agreement with The Abu Dhabi National Oil Company (Adnoc), one of the largest energy operators in the world, for an investment in the energy infrastructure of the United Arab Emirates. Of note among the mid caps is the flight by Tod's (+11,04%). Still in the spotlight Rai Way (+4,41%).
