Hurry up, the show has already started. Surprise the Australian central bank this morning he raised rates by a quarter of a point, pointing out that inflation is still too high. But from the other side of the world there is also good news: hsbc, the Anglo-Chinese banking giant is in excellent health, contrary to what has been whispered in recent weeks: profits b above estimates (12,9 billion against 8) will allow for both a buyback and an increase in the dividend. Thus kicks off a short week full of crucial appointments, starting with the meetings of the Fed and the ECB, in a climate still tense due to the crisis of American regional banks, resolved, hopefully, by the intervention of JP Morgan which absorbed the assets of First Republic.
The European markets have not moved much in view of the opening. The latest data capable of influencing the decisions that the ECB will take on Thursday will be released in the morning. In particular, the trend of the loans of Eurozone banks which will give an indication of the slowdown in economic activity. The manufacturing PMIs of France, Germany and the United Kingdom are also out.
JP Morgan puts out fire First Republic
Il rescue of First Republic account holders neutralized the worst US banking crisis since 2008. The Federal Deposit Insurance Corp took control of First Republic Bank, the second largest lender ever to fail in US history, then announced an agreement to sell all deposits and most assets a JP Morgan, which it will pay to the US regulator 10,6 billion dollars. The assets of account holders will thus be guaranteed, while the losers will be the shareholders. “This part of the crisis is over,” Jamie Dimon said.
In this context, a Wall Street JP Morgan, which now controls much more than 10% of the US banking market, rose by 2,3%. The rest of the market is flat, waiting for the Fed. Dow Jones -0,14%, S&P -0,04, Nasdaq -0,11%. In addition to central bank announcements, the market's attention is on quarterly reports from Apple and Starbuck.
Fed heading for one last hike
Nick Timiraos of the WSJ, the most informed journalist on the choices of the US central bank argues that the board, united in deciding the increase by a quarter of a point, seems divided on the next steps because the party of those who believe that the rising season, the most challenging of the last 40 years, must end. “I wouldn't want to see us go up, up and up and then quickly go down, down, down,” he says Patrick Harker of the Philadelphia Fed.
The Monetary Fund raises its estimates on Asia
More Chinese stock exchanges closed, the Nikkei index of Tokyo is up 0,2% and the Hang Seng by Hong Kong treads on parity. Hong Kong's GDP rose by 2,7% in the first three months of the year, the chief executive officer, John Lee, said today during a press conference.
Il International Monetary Fund (IMF) he raised the economic forecasts for Asia, thanks to the recovery of China which supported growth, while warning against risks deriving from persistent inflation and the volatility of global markets, caused by the problems of the Western banking sector. According to the IMF, the reopening of the Chinese economy will be fundamental for the region and the spillovers in Asia will focus on consumption and demand in the services sector rather than on investments.
It should be considered that April was the sixth negative month (-1,70%) of the last seven for the dollar. The market has convinced itself that the peak of inflation in the United States has already been reached and that the Fed could change the trajectory of rates as early as June.
Btp, the effort of families increases, Hedge less sell
Bond market waiting for central bank leaders 3,56-year Treasury Notes are up 2,31%. German Bund XNUMX%, BTP 4,16%
For the moment the bearish speculation on debt Italian public withdraws: the volume of BTPs borrowed by hedge funds to be sold short has decreased by 40%, warns the Financial Times. In the meantime, the demand for BTPs has found domestic support: in the half year from August 2022, households and non-financial companies Italian companies increased their holding of Italian public debt by 30% (+50 billion), to 213 billion, more than offsetting the sales by non-residents.
Bitcoin deflates, oil flat
Bitcoin +0,5% to 27.950 dollars from -5,3% yesterday, the worst start to the month of the year. Profit-taking on cryptocurrencies kicked in as news broke of the First Republic Bank bailout, dimming the prospect of a contagion from the US banking crisis.
Brent ($79,30), wtf ($75,70). Oil prices are stable and metabolize mixed data from China. Chinese manufacturing activity fell unexpectedly in April. Official data on Sunday showed the first contraction since December in the manufacturing purchasing managers' index. China's industrial and economic recovery from the coronavirus pandemic should have boosted demand this year, but that doesn't appear to be the case, perhaps because many foreign investors are taking a step back in investing in China. On the other hand, the services sector is pulling strongly due to the return to normal life with the post-covid reopening.
Ipo of Italian Design at 10,88, funds maneuvering on Enel
Even Gianni Tamburi does not rest on May 1st. Tip: announced this morning an agreement to acquire 51% of Investindesign, a company that currently holds the majority stake in Italian design brands. Tamburi will invest 72 million euro for the purchase of 50,7% of the share capital, attributing to the company an economic capital value of euro 220 million. Subsequently Italian design brands has set the price at which its ordinary shares will be offered in IPO at 10,88 euros, corresponding to a capitalization after the capital increases of 293 million.
Ferrari: Barclays starts coverage with Equalweight, target price at 250 euros.
Width:Stifel lowers the target price to 18 euros. “I don't expect any more major shocks on the energy market this year,” said CEO Claudio Descalzi. Libya's National Oil Corporation (NOC) announced on April 30 that it was suspending operations at the Mellitah oil & gas complex, a joint venture with Eni, for maintenance work that is expected to last about three weeks.
Is in the: Proxy advisor Frontis Governance has urged one of its Enel shareholder clients to support the Covalis fund slate, according to a document seen by Reuters. The report is aimed at Swiss Ethos, a group of pension funds and other investors. While waiting for the dispute on the board to be resolved, the outgoing CEO Francesco Starace declared a The Sun 24 hours to be "available if someone needs to temporarily carry on the management of the company, but within a time limit and certain stakes", reiterating that he is not available for another mandate.
The Italian government is working on a tassa on the extra profits of the banks to finance aid for families hit by rising inflation, reports a government source, adding that the measure will be finalized in the coming weeks.
Tim: The CEO Pietro Labriola will propose to the directors to ask for a further improvement of the offers received for the network in the next board convened on May 4, according to two sources close to the situation. The European Commission has given the green light to the Agcom resolution which revises the wholesale prices of access services to the Tim network. In particular, for 2023 the Authority has proposed an increase in copper prices, according to a person close to the dossier.
Leonardo communicated on 1 May that the subsidiary Selex ES completed the transfer of the company branch relating to the activities of radio navigation aids to the company Indra Air Traffic, wholly controlled by the Spanish company Indra Sistemas.
