It goes up and up: without jerks but continuously, the level of T bonds is rising, now close to 1,7% (1,684-year at 6), the thirty-year up by 18 points, the two-year at an 2-month high. Altogether modest movements and which are partly explained by the decline in activity in view of the Thanksgiving holiday. But the feeling is gaining ground that, in the eyes of the markets, the launch of Powell XNUMX, after the confirmation of the top management of the Fed, means war on inflation, even at the cost of slowing down an economy that in itself does not shine. Hence the prudence of price lists - especially towards technological stocks, the ones most exposed to rate hikes - and the expectation for today's data, from the US GDP for the third quarter to the publication of the Fed's minutes, a trace to understand times and ways of "tapering".
Meanwhile, New Zealand's rates are rising and so could those of Korea today. In Europe it is still not being talked about, but only because the contagion is raging. And that's not good news. The match on Telecom in Milan marks time, but the break will be short-lived. Indeed, while awaiting the landing in Rome of President Macron (who doesn't think it's true to celebrate a flop by Bolloré) the atmosphere around Generali is heating up.
TOKYO IN RED AFTER THE HOLIDAY, CHINA FLAT
The Asian price lists have not moved much. The tech crisis continues in Hong Kong too (+0,5%): Alibaba is down for the sixth time in a row. Evergrande also down.
The Tokyo stock exchange, closed yesterday for holidays, is about to end the session down by 1,7%, while the stock markets of China are around parity. The MSCI Asia Pacific Index, which excludes Japan, fell by 0,2%.
SINGAPORE: GDP +7,1%, AUCKLAND INCREASES RATES
The Straits Times index of the Singapore stock exchange gains 0,2% after the publication of data on the city-state's GDP: +7,1% in the third quarter is better than expected. Local authorities expect growth of a maximum of 2022% for 5, down from the +7% estimated for 2021.
The New Zealand dollar is down 0,6% against the US dollar after the announcement of the second rate hike (to 0,75%) by the Central Bank, accompanied by a soft-spoken statement.
The Bank of Korea could bring the cost of borrowing to 1% on Thursday.
US FUTURES DOWN, BEST BUY COLLAPSES
Wall Street futures are down a bit. Yesterday was another mixed session, with the Nasdaq down 0,5% and the Dow Jones up 0,5%. S&P500 -0,2%.
The best sector was that of banks (+2%). The worst stock was Best Buy (-12%).
Tesla closed down 4%. Elon Musk has told supervisory authorities that he has sold just under a million shares, amounting to $1,05 billion in proceeds. To meet the tax payment on the capital gains generated by the transaction, the founder exercised options on 2,15 million shares.
Euro-dollar exchange rate slightly moved at 1,124.
THE BIDEN PLAN DOES NOT STOP OIL
Brent oil and WTI are up slightly. The announcement by the United States regarding the placing on the market of a small part of their strategic reserves had an effect opposite to what the Biden administration and the large consuming countries that followed the same path perhaps expected: Texas crude oil yesterday it closed up 2,3%. There is an expectation that OPEC+ will respond with a reshaping of its plan to progressively increase production. The cartel meets on December XNUMXnd.
THE LIRA SHOULDER. ERDOGAN: THAT'S GOOD
Turkish stuff. "We are fighting the war for economic independence," Turkish President Erdogan spelled out, praising the decision by Istanbul's central bank to lower interest rates despite inflation at 20%. Ankara's currency lost 15%.
PMI, EUROPE KEEPS IT BUT IT SEES BLACK ON CONTAGIONS
The fourth wave has not blown, for now, the wind of recovery in the Old Continent. Leading industry and services indices in France and Germany closed above expectations. The Markit and BME PMI index on the expectations of purchasing managers of German manufacturing companies in November held their positions at 57,6: the consensus expected a drop to 56,9. The services component index was better than expected. The PMI indices for France are also positively surprising, both for manufacturing and for services. But optimism does not live here. According to Chris Williamson, Chief Business Economist of Ihs Markit, "it is difficult to avoid a deceleration, especially in view of an increase in infections". Moreover, “the combination of supply delays, sharp cost increases and renewed worries about Covid-19, have plunged business sentiment to its lowest since January, adding significant short-term risks to the economy of the Eurozone”.
ON RATES THE HAWKS ASK FOR A MINISTRATE, SPREAD IN FLIGHT
Euro/dollar cross at 1,1270, close to the highs. But the euro is back in force, also as a result of some statements made by members of the board of the ECB. For the president of the Dutch central bank, Klaas Knot, the inflation trend justifies the interruption of the purchases on the markets by the central bank.
Germany's Isabel Schnabel and Irish central bank governor Gabriel Makhlouf also acknowledged the inflation risks.
There is still tension on the bonds. Btp at 1,05% yield, +5 basis points, the highest since November 3, compared to 0,97% at the start. The spread rises to 128 points.
EUROPE IN RED, MILAN BELOW 27 THOUSAND
Closing in deep red for Piazza Affari, which rewinds the tape up to 26.939 points, -1,62%, falling below 27 thousand for the first time since last October 29th. In today's session, however, Milan tries to react, returning to the opening above 27 thousand points.
Returning to yesterday, only London (+0,2%) closes the positive ground. The growth in infections and the tension on rates arriving from overseas weigh on the other price lists: Frankfurt -1,1%, Paris -0,85%, Amsterdam -1,61%.
ThyssenKruP dropped 6,7% after Swedish activist fund Cevian nearly halved its stake in the German group.
UK electronics retailer Ad World plunged 24,6% after trimming its earnings outlook in 2022 amid supply chain disruptions.
TELECOM: VIVENDI SAYS NO TO KKR, BATTLE ON THE AD
Vivendi's no has cooled, for now, the hot spirits on Telecom Italia, which closed the session of November 23 with a drop of 4,72% after a positive start. The stock, however, sparks again and by mid-morning it is gaining over 9% today. The French group reiterated its intention not to sell the stake in the former incumbent to KKR. Vivendi "is a long-term investor and does not intend to sell its stake", said a spokesman, specifying that the company "reiterates its willingness to collaborate with the Italian authorities and institutions for the company's success". Furthermore, the offer, according to Vivendi, "does not reflect Tim's real value".
The novelty, although expected, caused the quotation to fall to 0,43 euro, well below the potential offer of the American private individual (0,505 euro). Vivendo, however, insists on asking for a change of management to move forward with a long-term business plan. In this regard, by the hour some advisers close to the French could ask to integrate the agenda of the board of directors on Friday with the distrust of the managing director.
The Minister of Economic Development, Giancarlo Giorgetti, spoke on behalf of the executive: while appreciating the interest of foreign investors in Italy ("it's very positive") he assured that "the government will rightly evaluate the public interest that underlies to a network that also has strategic profiles”. Naturally, "when the takeover bid takes place and the plan is detailed", added the minister.
Inwit is still in positive territory (+0,71%).
JUVE, COLLAPSE IN THE STOCK MARKET AND ON THE FIELD
Beforeembarked in the Champions League against Chelsea, Juventus experienced an even more bitter day on the stock market: -7,27% after the go-ahead from the board of directors on the definitive terms of the 400 million euro capital increase, with the subscription price of the new options shares incorporating a discount of 35,32% compared to the theoretical ex-rights price (Terp) based on the Stock Exchange closing price on the day before. For Exor, which has already advanced 75 million to allow for last season's accounts to be settled, the operation involves a total outlay of 255 million against a 63,8% stake.
THE INCREASE IN THE HANDS OF THE CONSORTIUM
It will probably require a strong commitment from the guarantee consortium (Goldman Sachs, Mediobanca, JP Morgan and Unicredit) which has undertaken to subscribe, severally and without solidarity, any new shares that may have remained unsold at the end of the rights auction unopted, for a maximum value of 144,9 million euro.
LUXURY SUFFERS, FERRARI HOLDS BACK
The Ferrari session (-3,78%, down from the maximum) does not console John Elkann.
He also took profits in the luxury sector (Moncler -3,78%). The banks were weak except for Unicredit (+0,62%): Bper -0,22%, Banco Bpm -0,91%, Intesa SanPaolo -1,07%. Mediobanca falls by 2,28%.
NEXI RUNS WITH BIGCOMMERCE, ENI OK
Few titles bucking the trend: Nexi (+1,52%) announced that it has entered into a strategic agreement with BigCommerce, the world's leading e-commerce platform in supporting online sales of merchants.
Eni did well (+0,42%) in the wake of the positive comments from analysts the day after the Capital Market Day on the Gas&Power and Retail & Renewables businesses. Money on Bologna Airport (+5%), promoted for the commitment to carbon neutrality.
(Last update: 11 am on 24 November).
