Weak start this morning for the Asian stock exchanges, conditioned by the negative closure of Wall Street (S&P index -0,19%), in turn held back by the uncertainties about the tax reform. This morning Tokyo dropped 0,7%, followed by Sydney (-0,3%). Stock markets in South Korea and India were also down: Kospi index -0,3%, Bse Sensex index -0,3%.
INSURANCE FLYING AFTER THE OPENING OF BEIJING
On the contrary, there is great optimism on the Hong Kong Stock Exchange (+0,4%): not only does the race for freshmen continue (Razer, electronic games, +4.% on debut), but Beijing's decision announced on Friday to allow foreign companies to take over the majority of financial companies has given wings to insurance companies, the first to benefit (time in three years) from the opening. Shares in Aia, a major company, rallied 6,3%.
Shanghai and Shenzhen were also on the rise (+0,3%) at the opening after the singles' day weekend, dedicated to purchases via the web (better to say via smartphone, which accounted for 90%): Alibaba achieved sales for 25,4 .19,1 billion dollars. Jd's rivals. Com for XNUMX.
Worth noting is the sharp decline this morning in the pound: -0,7%, to 1,1305 against the dollar. The Sunday Times has revealed that 50 Tories MPs have pledged in a letter to ask for no confidence in Prime Minister Theresa May. During the week, the British Parliament will have to vote on the European Union Withdrawal Bill, the "ledger" of divorce from Brussels.
BITCOIN FALLS: -1000 DOLLARS IN ONE DAY
Equally abrupt return to reality for Bitcoin: on Sunday the virtual currency dropped 22%, losing over a thousand dollars, to 5,555 dollars. The euro moved little at 1,165 against the dollar.
Another roaring week is looming for oil, traded in Asia at 63,63 dollars, not far from the highs: 64,65 for Brent at the end of the fifth consecutive week of increases.
An explosion in a Bahrain oil pipeline attributed to "terrorists" contributes to accentuating the tension in the Persian Gulf. In the meantime, a meeting will be held today between Venezuela, at risk of default, and the creditors. Ahead of the month-end meeting of manufacturers in Vienna, a spike in speculative futures contracts for February was noted at around $71.
18 BILLION OLD BTP MATURING
The attention of the Italian markets is concentrated on the offer of Btp Italia, now in its twelfth edition. From today to Wednesday (Thursday the offer will be reserved for institutional investors) the public will be able to book online (and without commissions) the six-year Italian government bond indexed to inflation with a guaranteed minimum annual real coupon of 0,25% , to which the price increase will be added. The subscription coincides with the expiry of the Btp Italia in November 2013, the maxi-issue which will have raised 22,3 billion (reduced to around 18 billion thanks to a series of swaps).
How will subscribers respond, especially the 138 bot people veterans who had subscribed to lots of less than 20 euros each? Compared to the yield of the BTP that has just expired, 2,15%, the conditions will certainly be stingy: after the meeting of the ECB on 26 October, government bonds in the Eurozone recorded significant drops in yield, culminating in the historic low of the Bt at 12 months, placed last Friday at auction at – 0,0395%, new all-time low. It is easy to predict that many capitals will take other directions. The Treasury's goal is to raise 8 billion.
The auctions of medium-long term Treasury securities are also scheduled today: issues for 2020, 2024 and 2033 will be offered for 4, 5 and 6 billion.
TODAY 27 QUARTERLY. A2A ACCOUNTS COMING SOON
On the corporate front, the last shower of quarterly reports is arriving in Piazza Affari. Today, 27 Boards of Directors are scheduled on the accounts of listed companies, starting with A2A. Tomorrow it will be the turn of Astaldi and Salvatore Ferragamo. So far, the Ftse Mib companies that announced the third quarter data have achieved a significant increase in profits: over 9 billion, with a growth of around 31%. In the first nine months, the balance was 32 billion, the highest in the decade.
However, the European stock exchanges archived a week of declines: Piazza Affari -1,7%, Frankfurt -2,4%, Paris -2,8%. In the spotlight, after the sharp fall on Friday, the Leonardo stock.
BANKS, THE MPS CASE IN PARLIAMENT
Also to be followed, for the repercussions that there could be on the financial markets, is the work of the Commission of Inquiry into the banks, which this week, after dealing with the rescue of the two Venetians, opens the politically incandescent dossier of Monte dei Paschi di Siena.
A busy week also on the public accounts front, with the Senate Budget Commission engaged in the tax decree, and then following the maneuver. The government will today face the confrontation with the trade unions on social security issues.
CENTRAL BANKERS PARADE IN FRANKFURT
In a European key, the great parade of central bankers tomorrow at the meeting organized by the ECB in Frankfurt should be noted. Outgoing Fed chair Janet Yellen, Bank of England governor Mark Carney and Bank of Japan number one Haruhiko Kuroda will speak. Mario Draghi will close. The ECB president will grant an expected encore next Friday at the annual conference of European banks.
On the macro front, the preliminary data on GDP for the third quarter and on the inflation of the main countries, including Italy, should be noted in the Eurozone.
GENERAL ELECTRIC RISKS TO LEAVE THE DOW
In the US, tax reform is advancing with many difficulties: the plan drawn up by the Republicans will be presented to Congress this week, but the Senate is about to finalize a very different draft. Meanwhile, the American president, Donald Trump, is engaged in the last stages of his trip to Asia.
The General Electric crisis should be reported to Wall Street. According to Reuters, the stock, down 35% in 2017, risks being excluded from the Dow Jones Industrials at the next revision: GE has been part of the index since its inception, in 1896.
Several interventions by Fed members, starting with Vice President Stanley Fischer, as well as William Dudley of the New York Fed himself anticipated the willingness to leave. James Bullard (Saint Louis), Charles Evans (Chicago) and Lael Brainard will also speak.
Among the statistics of the week the Empire index on the trend of industrial production and inflation.
