Sorry, the price is not right. It is the judgment that the brokers have reserved for quarterly of quite a few European blue chips from which emerge, according to them, results that do not justify the prices reached with the recent rallies. This largely explains the negative streak of the Eurozone price lists, which have reached their sixth negative session in a row (the seventh for Italy), which continue to reserve negative surprises. After the shock of Leonardo, yesterday was the turn of the collapse of edf, the French colossus that controls the Italian one Edison: -12% after the cut in the 2018 guidance, the worst performance in the last ten years. To complicate the situation was added the increasingly bitter confrontation on the evaluation of Npl: Germany has sided with Danielle Nouy regarding the Addendum proposed by the EU Supervisory Authority. Rejected by the European Parliament (under Italian pressure).
Only the reassurances of US Treasury Secretary Stephen Mnuchin on the tax reform prevented a close in the deep red. In the meantime, today 13 members of Central Banks will take the floor, including 4 heavyweights (Dragons, Yellen, Carney and Kuroda) in a single panel called "challenges and opportunities of central bank communication". However, surprises are unlikely to emerge a few months after the changing of the Fed guard.
A picture full of contrasts emerges from the Borsa weather map. Also in Asia red dominates. Brake the Chinese locomotive. After the party congress has been closed, Beijing has decided to tighten investment and debt as well as close several highly polluted power plants in the northeast, a land of steel mills. Thus industrial production slows down (+6,2%). Consumption is also down (+10%) which, however, does not yet incorporate the Single's day e-commerce exploit: sales Alibaba$24,5 billion in a single day was more than the annual GDP of Iceland or Cameroon.
The slowdown in the Dragon's purchases of raw materials weighs on the Stock Exchange Sydney. Hong Kong it's about parity. Slightly declining Seoul (Kospi index -0,3%) e Mumbai (BSE Sensex index -0,1%).
The exception is Japan. After four days of declines, the index advances Nikkei +0,4%, also thanks to the slowdown in the yen. Reuters reports that speculation is buying US Bonds by financing the operation with the short sale of the yen and the Swiss franc, profiting from the difference in yields.
A Wall Street a new act of the crisis has been staged General Electric -7,22% to 19,22 dollars which at these prices really risks exiting the Dow Jones index. For the second time in its more than 50-year history, the group has cut its dividend -XNUMX%) and announced a drastic cut in assets. From now on, Ge will focus on aviation, health and energy.
The main indexes are positive: Dow Jones + 0.07% S & P 500 e Nasdaq +0,10. The market is waiting for news regarding tax reform, the measure that has contributed more than any other to the rally in the US stock market. Donald Trump concludes his trip to Asia today.
Qualcomm +3% rejected the offer of 103 billion dollars launched by as "highly inadequate". broadcom.
The chances of success are more favorable for Mattel +20,7%: the Barbie house seems close to buying Hasbro +5,9%, the producer of Monopoly.
Under braking oil: the Brent it is traded on Asian markets at 62,9 dollars a barrel, down 0,2%, yesterday it closed down 0,6%. Contrast the energetics. Eni -0,7% Saipem -0,6% Tenaris-1,2%.
The Standard & Poor's agency this morning declared the default of Venezuela after Caracas failed to honor its debt installment yesterday for the second consecutive time.
EUROPEAN PRICE LISTS
European stock exchanges accumulated losses well in excess of one percentage point during the day, to then recover positions after the opening of the US market. However, the session ended once again in the red, as has been the case since 3 November. Great attention today to the preliminary data on the third quarter of GDP Germany, Italy and the Eurozone. An acceleration of growth to +0,4% quarterly from +0,3% in the previous quarter is expected for Italy
A Milano the clue ftse Mib leaves 0,55% on the ground at 22.437 points: so far in 2017 there had never been seven reductions in a row. By mid-session the index had dropped to 22.269. The performance since the beginning of the year is still strong (+16,5%) and better than the European average (Eurostoxx +8%).
The other price lists of the Old Continent are also in red: The climate remains cold also in the other European squares: Paris -0,73%, held back by Edf; Frankfurt, -0,4%, Madrid -0,42%. The ousted president of Catalonia, Carles Puigdemont, said he could consider a solution to the Spanish political crisis that does not contemplate the region's secession, giving the impression that he has softened the pro-independence line;
London -0,24%. Slip the GBP, to 0,89 from 0,884. The Sunday Times wrote that 40 Conservative MPs have sent to Prime Minister Theresa May a letter of no confidence. Today the prime minister faces a difficult debate in Parliament on Brexit.
BTP ITALY
Positive response from the market on the first day of the offer Btp Italy. On the first day of the offer of the six-year bond. November 2023, minimum guaranteed real coupon 0,25%, requests from retail investors reached 2,186 billion euros, a level well above the 1,62 billion of last May's issue.
The offer intended for investors continues until Wednesday 15 November, unless the Ministry of the Economy opts for an early closure as early as this afternoon.
The Btp Italia of 12 November 2017 which has just reached maturity (for the residual amount of 18,1 billion) has guaranteed a yield of 2,87%.
The mid-month auction of medium/long-term securities was postponed by three hours yesterday due to technical problems. This circumstance did not prevent the Treasury from placing the entire amount offered (6 billion) of BTPs at 3, 7 and 15 years, with declining yields on all three maturities. The ministry has thus covered just under 90% of the refinancing needs foreseen for this year.
Auctions on German 2-year and 10-year bonds will take place today and tomorrow. Thursday will be the turn of French and Spanish securities: in all up to another 20 billion euros in the medium-long term (including the reopening of the 50-year Spanish bond), indexed included, which will arrive on the market in the next three sessions.
Several negative notes for the blue chips of Piazza Affari:
- There was no rebound of Leonardo -4,3% after the collapse on Friday (21%) following the profit warning launched by the subsidiary of the Treasury. The stock suffered, indeed, the eighth consecutive drop, slipping to 10,45 euros, the lowest price since last November. This morning SocGen cut the judgment to Hold from Buy and the target to 14 euros from 18 euros. But out of 17 Bloomberg consensus analysts, six suggest buy, 11 suggest hold.
- The losses are also very heavy Telecom Italy -3,23%. At the origin of the landslide was the rejection of Goldman Sachs which lowered the recommendation on the telephone company, taking it from Buy to Neutral. The same broker also reduced the target price to 0,71 euro from 0,84 euro, a value below the 25% compared to the consensus average, equal to 0,94 euros.
There are now 5 analysts proposing the Buy, 6 are for Hold and none for the Sell.
BANKING SECTOR
No less tense is the situation in the banking sector. The decline in the sector stops at -0,46%, better than the European one which stands at -0,77%. However, the duel on the issue of non-performing loans continues: the monetary fund has sided in favor of the proposals of the European Supervisory Authority. Germany also supports Danielle Nouy's plan, said German Deputy Finance Minister Thomas Steffen.
In sharp decline Monte Paschi Bank -3.75% to 3,95 euros below 4,28, the price at which it returned to the stock exchange in October. JP Morgan cut the target price to 4,20 euros.
Bpm bank +0,1%, fully recovered the losses, the quarterly data did not convince, although they were better than expected. Ubi Bank -1,8%, Unicredit + 0,1% Understanding -0,7%. Creval +1,7%, weakly reacting to the disastrous -45% accumulated last week. In asset management, Anima -4%.
LUXURY, UTILITIES E OTHER
Down too Ynap -2,2%: Credit Suisse cut its Neutral rating. Moncler +0,9%, announced that it will close two product lines, the Gamma Rouge and Bleu collections. Seat on the roller coaster for Ferragamo -0,4%, at the start it leapt forward by +4,8% without apparent explanations
Among the rare positive notes, we highlight: Ferrari +1,2% and Mediaset +1%. Pirelli +1,2%. JP Morgan initiates coverage with an Overweight rating.
Among the utilities, A2A marks a modest -0,5%. The Milanese utility recorded, in the third quarter of 2017, an adjusted Ebitda of 230 million euros, substantially in line with our estimates of 232 million euros. Enel -0,3%.
In the rest of the list: it bounces Astaldi + 6% Fincantieri + 3%. Fiera Milano +5%, was the best title. The International Cycle, Motorcycle and Accessories Exhibition ended over the weekend with a record number of visitors.
Mondo Tv +2%, has announced that it will produce two cartoons for a Chinese media company.
