After three years full of twists and turns, the final word on Brexit has not yet been written. The divorce (by now consensual) between London and Brussels will not be celebrated before January 31st. In the meantime, however, new elections will be held in the United Kingdom, at the request of Boris Johnson. The markets thus acknowledge that the uncertainty is destined to last at least a few more months. Bad news, especially for Germany, the country most interested in defining the post-Brexit framework, which could affect the opening of European lists. Dax futures (-0,8%) anticipate a heavier red start than in London (-0,2%).
CHANGE OF THE GUARD IN HONG KONG
The markets are also influenced by another news coming from what was once the British empire: China has now decided to change the guard in Hong Kong, sacrificing the governor Carrie Lam, unable to cope with the protests that have upset the former British colony: the Hong Kong Stock Exchange drops 0,9% this morning.
The third hot front regards oil, the protagonist yesterday of a flare up to 59,4 dollars a barrel (+1,5%) on the rumors of an agreement between Russia and Opec for a cut in production starting from December.
All in all, a day of waiting in view of the great farewell of Mario Draghi, tomorrow the protagonist of the last press conference of his mandate which coincides, among other things, with a new drop in the spread and the return of confidence in the BTP Italia.
The Tokyo Stock Exchange has recovered in the final stages (-0,1% after -0,4% at the start).
The CSI 300 index of the Shanghai and Shenzhen lists lost 0,4%, the Kospi of Seoul 0,5%, the S&P ASX200 of Sydney 0,4%.
The dollar-yuan exchange rate rose slightly to 7,08.
THUD OF MC DONALD'S, TEXAS INSTRUMENTS COLLAPSES AFTER THE ACCOUNTS
Wall Street closed down yesterday, S&P500 -0,36%, back below the 3 point barrier. Nasdaq -0,72%, Dow Jones -0,15%.
The poor quarterly report of Mc Donald's (-8%) and the troubles of social networks weigh heavily. Three senators, two Democrats and one Republican, have presented a law that obliges social network companies to facilitate the transfer of data by users who intend to abandon them. Very bad Facebook (-4%), Snap (-4%) and Twitter (-3%).
Strong recovery Harley Davidson (+8%) after the accounts.
With closed markets came the quarterly of Texas Instruments. The Texan chip maker released lower-than-expected sales forecasts, the stock losing 10% in the afterhours, also penalizing Asian companies in the same industry.
The euro pound appreciated to 0,865 (+0,2%), from +0,5% at the close after a historical day in its own way.
LONDON TOWARDS EARLY VOTE, BREXIT IN JANUARY
Boris Johnson had to abandon his goal of getting the UK out of the European Union by October 31st. Parliament rejected yesterday evening (322 votes against 308) the motion which would have allowed the Premier to have the exit agreement ratified in forced stages, also approved yesterday evening by Westminster. The ball thus passes back to Brussels, which will have to set a new date, probably January 31, for the agreement with the United Kingdom.
But, at this point, Boris Johnson is likely to aim to call for a snap election by that date.
IN THE CITY THERE IS ALSO THE WAR OF THE FORK
Piazza Affari closed yesterday a session with little history with a narrow +0,04% to 22.487 points.
The rest of the eurozone does not deviate much from the Milan script. Frankfurt climbs 0,09%; Paris +0,17%; Madrid -0,29%.
London is more active (+0,73%). While awaiting the outcome of the battle between Boris Johnson and Parliament, the City has been at the center of major financial maneuvers since the War of the Forks: Just Eat, the leader in home food delivery, has flown into orbit (+ 24,2%) after the announcement of a counter takeover bid by the financial company Prosus to block the merger with the Dutch takeaway. com.
SELL TOWARDS CONTROL OF PEAKY BLINDERS
Wedding of the century in sight between two European TV production giants: the French Banijay, whose capital includes Vivendi, has defined the purchase of Endemol Shine (the production company of Peaky Blinders) valued at around 2 billion euros. The agreement will create the most important independent TV production company in the world.
WE REVIEW THE BTP ITALIA: ALREADY COLLECTED 3 BILLION
The BTPs are advancing, driven by the success of BTP Italia.
The Italy-Germany spread on the ten-year segment fell by a hair's breadth from the new low since mid-May 2018, to 127 basis points.
The new Btp Italia expiring in October 2027 collected almost 3 billion euros in orders (2,99 billion) in the two days of the offer reserved for retail.
Last November, when a similar instrument was offered (but with a duration of 4 years), subscriptions had stopped at 863 million in three days of the offer.
On Friday, the Treasury will offer up to 3 billion of new Ctz, canceling the offer of Btpei.
On the eve of the last directorate led by Mario Draghi, the Bundesbank decided to promote the economist Isabel Schnabel, judged to be much softer, to replace the "falchetta" Sabine Lauterschlaeger.
MANAGED SAVINGS ADVANCES
Banks in adjustment after the movements of the last few days. Banks slightly down, with Europe.
Unicredit drops by 0,5% after having outperformed the index in recent sessions. While awaiting the business plan of 3 December, it is accelerating the cleaning up of assets with a maxi-securitization of over 6 billion euro of non-performing loans.
Mediobanca -0,2%. Morgan Stanley cut the recommendation from Overweight to Equal Weight.
Asset management is good. Anima Holding advances (+1,5%): in days
last year Berenberg started hedging with 'buy' and a target of 4,5 euros. Azimut also followed well, up 1,65%. On the other hand, Finecobank slows down (-1,36%).
GOLDMAN PROMOTES ITALIAN POSTAL
The star of the day is Poste Italiane +1,16%, far from the highs of the session: Goldman Sachs has increased the target to 13 from 10 euros. According to the investment bank there is hidden value in the mobile-payments and digital business. Dividend yield at 5%. The first interim dividend for 2019 expected by the end of the year-
TIM, THE RED ERA BEGINS. IN VIEW OF THE CONVERSION OF RESP.
Time +0,5%. The Board has appointed Salvatore Rossi, former director of the Bank of Italy, to the presidency. On the new president's table the conversion of savings shares and the Open Fiber dossier. On the subject of savings, according to a study by Jp Morgan "the cost of capital of Telecom's RNC has become unsustainable, given that the privilege on the dividend causes the company to spend 15% a year on savings".
Stm started well, then corrected to close down by 1,09% on the eve of the quarterly report.
Campari is also weak among the blue chips (-1,86%).
SALINI DOES GOOD BUSINESS IN CANADA
Salini Impregilo runs (+4%) after the announcement of the award with Astaldi of shares in a contract in Canada for a total of 917 million.
Leap for Gamenet (+4,7%) and new all-time highs at 14,2 euros. Cyberoo (+2%), a company specializing in cybersecurity for businesses, in the spotlight. KT&Partners started the hedging by assigning a target price of 4,62 euros.
