The enthusiasm for the agreement between the European Union and the United States was short-lived; it was touted as a success but in reality it turned out to be a door slammed in the face. Of course, it could have been worse if we consider the threats of the tycoon who had thrown the financial markets into panic. But companies still have to pay high fees: the 15 % tax on European products is still a burden when compared to 1-2% in effect before President Donald Trump took office Trump. Which, trying to divert attention from the Epstein case who sees him close to the pedophile financier, takes home higher fees without retaliation and with commitments for additional investments: apparently a victory, but with many doubts about how all this will be reflected in consumption, work and inflation also in the USA itself. The leaders of France and Germany lamented the outcome as a brake on growth, and yesterday all of Europe saw a decline in stock and bond markets, also damaging the single currency. Tomorrow will be the Fed to paint the American picture.
This morning theeuro recovered the losses and the European stock exchanges are indicated by recovering futures, as investors try to gauge what the next step will be.overall impact of the new tariffs, worldwide between 15 and 20%, its growth and inflation. A further risk to global growth is seen from a possible increase in oil prices. Petroleum, after Trump threatened to set a new deadline of 10 or 12 days for Russia for it to make progress towards ending the war in Ukraine, otherwise it will face tougher sanctions on oil exports.
Wall Street hits new records ahead of a flurry of corporate data
Wall Street currently remains at record levels, buoyed by strong quarterly results from Big Tech. But the long-term impact of the tariffs on the US economy and revenues remains to be assessed, with most observers agreeing that the growth slow and that inflation , unemployment will increase in the short term.
This week is the most intense of the second quarter earnings season, with over 150 companies in the S&P 500 index scheduled for release results, including four of the “Magnificent Seven” tech giants this week. Today's focus will likely be on Visa, Proctor & Gamble and BoeingInvestors are also waiting future themonetary policy announcement of Federal ReserveThe central bank is expected to keep US rates unchanged, despite Trump increasing pressure on Fed Chair Jerome Powell to reduce borrowing costs.
The S&P 500 index rose slightly (+0,02%), closing at a record high for the sixth consecutive session, while the Nasdaq also closed at a record high (+0,33%) amid choppy trading. The Dow Jones fell 0,14%.
Asia declines. Expectations are high for US-China agreements.
There is an air of caution in Asia and the stock markets are mostly down. same rate of 15% it was also imposed on the Japan last week and similar percentages as well many other Asian countriesThe agreement with the still needs to be defined Chinawhile they are negotiations are underway in Stockholm, and many are betting on a 90-day extension. These talks, which are expected to conclude today, could also pave the way for a meeting between Trump and Chinese President Xi Jinping in late October or early November.
Asia-Pacific's largest stock index outside Japan slipped 0,7%. Nikkei Japanese fell 0,8%, while the Chinese Blue Chips they are down by 0,1%.
In the currency markets, theeuro found a base at $1,1592, after falling 1,3% overnight, its biggest decline since mid-May. It now has chart support at $1,1556. The index dollar rose to 98,674, after a 1% jump overnight, while it hit a one-week high against the yen at 148,63.
Il Brent rose 0,1% to $70,10 a barrel, after rising 2,3% on Monday, while U.S. crude held at $66,73.
European stocks see a rebound at the open. In Milan, eyes are on Stellantis, the banking risk game, and Webuild.
Le European stocks have stabilized after yesterday's sell-off and are attempting to rebound today, according to Eurostoxx 50 futures which are up 0,5%, while analysts are trying to quantify the impact of the tariffs on businesses. For the Italian companies the impact of the 15% tariffs is equal to 22,6 billion, according to what the president of Confindustria, Emanuele Orsini, said at the Tg1. Today's financial statements include those of Terna, Amplifon, Recordati, Banca Generali, Brembo, and Inwit.
Stellantis Renault today announced a net revenue increase and a single-digit operating margin in the second half of the year, despite growing headwinds, as the automaker aims for a gradual recovery after a challenging first half. The group also forecast an improvement in industrial free cash flow performance in the second half of the year compared to the first six months, when it burned through €3 billion in cash. Tariffs had an impact of €1,5 billion, of which €0,3 billion was recorded in the first half.
Essilor LuxotticaOperating profit increased 4,1% in the first half, despite the impact of U.S. tariffs. Adjusted operating profit amounted to €2,53 billion in the first half, slightly below the Visible Alpha analyst consensus of €2,55 billion. Revenue at the Franco-Italian group increased 3,2% at current exchange rates in the second quarter, penalized by the weakening U.S. dollar but supported by the acquisition of Supreme and Heidelberg Engineering. Excluding the exchange rate effect, the increase was 7,3%. The group confirmed its long-term outlook.
Unicredit, ready to strengthen its position in Commerzbank. According to what MF-Milano Finanza The German bank's advisors, Goldman Sachs and UBS, are reportedly on high alert for a possible move by the group led by Andrea Orcel: the conversion into shares of the Italian group's last derivatives package, equal to approximately 8% of its capital. The transaction, planned for late 2024 through total return swaps with banking counterparties such as Barclays and Citi, would mark a decisive step in the strategy of approaching the German group.
WebuildConstruction of the Messina Strait Bridge is expected to receive government approval next week.
Bialetti will leave Piazza Affari on August 7 following the takeover bid by Octagon Bidco which reached 96,4% of the capital.
Mps-MediobancaThe president of Delfin, Francesco Milleri says, in an interview with The Corriere della Sera, that Monte dei Paschi's offer for Mediobanca, "is very interesting, we will continue to evaluate it. A possible adjustment to reflect the performance of the stock market would make the offer more attractive to investors." Delfin holds 19,8% of the capital of Mediobanca and 9,866% of MPS. When asked if Delfin intends to round up the stake in GeneraliMilleri responded: “No, however, we have consolidated our position by completing the authorization process in the two EU jurisdictions that were missing in order to remain above 10% of the company, a figure that we have exceeded following the buyback operations. I do not believe there are many non-banking or financial companies that have achieved such a result.” As for the stake held in Unicredit, “we will continue to monitor the values and weigh up capital gains and opportunities, like any good manager,” concluded Milleri.
