After a 4.500-kilometer train journey, President Kim arrived in Vietnam. Donald Trump will join him in a few hours for the summit that could lead to a historic nuclear deal. However, the markets are choosing caution, waiting for the president's tweet announcements on the trade peace with China and expectations on the Korean front to be translated into concrete actions.
In Asia, only Shanghai rose, +0,4%. Tokyo's Nikkei loses 0,5%, Hong Kong's Hang Seng 0,6%. Seoul's Kospi, the most exposed to possible nuclear retaliation from Pyongyang, fell by 0,4%.
CLASHES BETWEEN INDIA AND PAKISTAN. DOWN TOKYO
The outbreak of a new regional emergency weighed on the mood of the price lists: there were clashes on the border between India and Pakistan.
The yen, a safe haven currency, appreciated against the dollar, at 110,82. The Indian rupee is losing ground, while the Mumbai Stock Exchange is down more than 1%.
Sovereign caution also on Wall Street which reduced the increases in the end: Dow Jones +0,23%, S&P 500 +0,12%, Nasdaq +0,36%.
The signals coming from S&P's projections on earnings trends for the first quarter of 2019 contributed to curbing enthusiasm: forecasts speak of an average slowdown in profits of 0,9%, against previous estimates of +5,3 %. To support the Bull, according to a New York Times investigation, are, more than the profits, the buybacks (190 billion dollars) carried out by the corporations.
CLARIDA (FED): NEW WEAPONS TO DEFENSE THE MARKET
But the fundamental contribution is guaranteed by the Fed. While awaiting the intervention in the Senate by President Jay Powell, Vice President Richard Clarida took the field yesterday and, speaking at an event in Chicago, said that the central bank is keeping all roads clear when it begins a review of its monetary policy line. Clarida spoke of the possibility of using previously set aside instruments, such as, for example, the introduction of a limit on the yield of government bonds.
GENERALI ELECTRIC MAKES CASH: SELLS BIOPHARMA FOR 21 BILLION
In great evidence General Electric (+10,8%). The company may have resolved its debt woes in one fell swoop, with the sale to Danaher (+8%) of its BioPharma tools business. Gross: $21 billion.
Word of Donald Trump: “Oil prices are going up too much. Opec, please relax and be calm. The world cannot bear a rise in prices."
The president's tweet has flattened the prices of black gold: Brent is down by 0,3% to 64,4 dollars a barrel, from -3,5% yesterday. In Piazza Affari Tenaris unchanged. Barclay's has lowered the target price. Eni -0,5%
The euro trades at 1,136 against the dollar, up slightly.
BUSINESS PLACE NEW LEADER LIST
Fitch, ed duties elections in Sardinia. Here are the ingredients that brought good luck to Piazza Affari, the leading price list in Europe yesterday. The FtseMib index +0,86% reached new highs since mid-October at 20.448 points during the day. From the beginning of the year +11,0%.
Further behind are the other European markets, Frankfurt +0,44%, Paris +0,31%, Madrid +0,03%.
THERESA MAY SUMMONS MINISTERS: DEFERRAL NEAREST
But the spotlights are on London +0,09%, grappling with the new chapters in the Brexit saga. This morning in Asia the pound soared to 1,33149 against the dollar, its highest for a month: Bloomberg writes that Theresa May is preparing today to ask members of the government to examine a possible postponement of Brexit, as the president of the european council.
“It is absolutely clear – he said yesterday – that there is no majority in the House of Commons to approve an agreement. The closer we get to March 29, the greater the probability of an extension. It is an objective fact, not a plan or a goal." The Labor party's turnaround prompted the postponement: Jeremy Corbyn opened up the possibility of a new referendum on Brexit. A choice probably linked to the fact that in recent days some members of Labor, in favor of a referendum, have left the party
TRIA: EUROPE WILL NOT ASK US FOR A BIS MANEUVER
After the elections in Sardinia and Fitch's analysis, the economic emergency is once again topical. Minister Giovanni Tria ruled out the request for a corrective maneuver to meet the net debt targets agreed in December from Europe. The minister pointed the finger at the European budgetary rules because they are "pro-cyclical" and risk aggravating Italy's situation. “If Europe had a different policy – he added – if Germany did not follow the mercantilist policy pursued so far, Italy could implement a much more restrictive budgetary policy”. But Tria himself took sides for the creation of the Tav: "Nobody - he said - "Nobody will ever come to invest in Italy if the country shows that a changing government does not comply with the agreements".
A brilliant day ended with Tria's words, marked by large recoveries for the secondary market galvanized by Fitch's verdict on the rating.
SPREAD DOWN TO 266 POINTS
The spread between Italian and German 266-year bonds narrowed to 11 basis points, 2,77 cents below Friday's prices while the XNUMX-year yield fell to XNUMX%.
Month-end Treasury auctions resume today. Today it's the turn of the six-month Bots (6 billion). Tomorrow it will be the turn of the new ten-year BTP 1 August 2029 with a 3% coupon, on the plate for an amount between 3,25 and 4 billion, together with the thirteenth tranche of the five-year October 2023 (1,5/2 billion) and the third of the CctEu January 2025 (750 million/1,25 billion).
BANKS IN RALLY: +2,4%, UBI AND CREVAL SUPERSTAR
At the head of the Piazza Affari rally were the banks; the sector index, supported by the decrease in the spread, recorded an increase of 2,4% against +1,2% of the European Stoxx.
Particularly highlighted Banco Bpm (+3,45%) and Unicredit (+2,93%). Even better Ubi Banca (+4,82%). Changing of the guard in Creval (+10,62%): the board of directors appointed Luigi Lovaglio, former president of the bank, new CEO and general manager, while Alessandro Trotter, who held the position of vicar vice president, became president.
HIGHLIGHTS STM, PIAGGIO SCRUBBER
The effect of the US-China negotiations was felt on Stm +2,93% and on the automotive sector: Fiat Chrysler +0,5%, Cnh Industrial +0,4%, Pirelli +0,8% and Brembo +2.9 %.
Piaggio did better (+4,8%) on the good results of 2018 and on the proposed distribution of a dividend of 9 cents, up from the 5,5 cents paid in the previous year. Prysmian also stands out (+2,4%).
Tim moved little (-0,33%) who did not react to the opening of the majority shareholder Vivendi to a merger of the Telecom network with Open Fiber. Profits were taken by Inwit (-3,6%) after the leap following the announcement of the agreement with Vodafone Italia for sharing the mobile network.
Fincantieri gains 0,8%, pending the accounts released after the closing: the company will distribute a dividend of 0,01 euros.
Among the minor titles Biancamano +37% after several suspensions.
