Btp, today is D-Day. AT&T-Time Warner, green light

After the boom in requests for Bots, today's Btp auction will be another crucial test for the Treasury pending Draghi's moves ) repudiates Trump and the Antitrust but inflames TLC and the media – Entente-BlackRock: agreement close for Eurizon

Donald Trump enjoys Singapore's media triumph, but collects a burning defeat at home. The federal judge has disavowed the veto that the Antitrust, vehemently supported by the president, which had opposed the merger between AT&T (+1,3% after the Stock Exchange) e Time Warner +5%, which controls the hated Cnn.

The operation, which will give birth to a giant that today weighs 275 billion dollars on Wall Street, will have major consequences on the media industry and, more generally, on the future of M&A operations. A confrontation with white weapons is already looming between Comcast -4,3% and Walt Disney -1.8% on the lot of Fox +7%. But all the big telecommunications companies are in fibrillation awaiting a wave of mergers between telecom operators and content providers to counter the advance in the sector by Amazon and Google. Sprint achieved an increase of 2,8%, cbs + 4,6% Discovery +4,1%, Viacom +4,3%.

All this happened in the evening, because the news came after the closure of Wall Street, which moved little during the official session pending announcements on rates (granted the increase of a quarter of a point) that the Fed will announce tonight at 20pm ( Italian time). The Dow Jones finished flat, while the Nasdaq rose (+0,6%).

The cross euro dollar it is flat at 1,174. The yield on the 2,96-year US bond is at XNUMX%.

Tesla it closed up more than 3%. Boss Elon Musk wrote to employees that he is about to get rid of 9% of the workforce, the cut should mainly affect white collar workers, who will be given shares and a "significant" additional salary.

Il Japan, grappling with a dramatic shortage of workforce, has decided to open the borders to 500.000 migrants arriving from Asia. The dollar appreciates to 110,7 against the yen, the highest in the last three weeks. The Japanese Stock Exchange is up 0,5%.

The effect of the handshake between Trump and Kim did not impress the markets. In China, the CSI300 index of the Shanghai and Shenzen stock markets is down by 0,7%, Hong Kong (-0,6%). The shares of collapse zte (-38%) after the agreement with the US authorities which will allow the group to resume purchases of essential components for the business. The company will have to pay a 1,4 billion fine and replace the entire top management, guilty of doing business in Iran and North Korea.

Tonight's decision by the Chinese central bank to change the rules on the sums that foreign persons qualified to operate in the country can expatriate has caused some concern.

Il Petroleum Brent is down to 75,6 dollars a barrel (-0,4%). Bloomberg writes that Russia plans to ask other OPEC producers to return to production levels of October 2016, with a gradual increase to begin this summer.

At Piazza Affari it goes up Eni +0,3%. Banca Akros, on the other hand, increased the target price from 17 to 18,5 euro ("buy" rating). Saipem -1,9%.

EUROPE "STOP" WAITING FOR DRAGONS

In the end, the European lists weaken in anticipation of the meetings of the central banks.

Milano +0,15% however it closed in positive territory at 22.119. About 2,4 billion euros the value of trades, down compared to almost 3 billion on Monday).

The other markets of the Old Continent did worse. Overall, however, Piazza Affari is doing better than Frankfurt -0,02%; London -0,37%; Paris -0,38%.

The problems are multiplying for the European Union, already grappling with US duties. It exploded yesterday, on the eve of the summit between the two countries, the conflict between Italy and France, divided on the management of migrants. The ban on the docking of the Aquarius ship in an Italian port decided by Italy "makes you vomit", said the spokesman for the French president Emmanuel Macron. The Italian government responded by accusing Paris of “hypocrisy by referring to the line taken by the French government on economic migrants and border controls with Italy.

THE ZEW INDEX AT A 5-YEAR LOW

In this context, the sentiment of the economy worsens. The German Zew index which measures business sentiments fell to a five-year low (-16,1 points in June compared to -8,2 in May). "The recent escalation of the trade dispute with the United States, as well as fears about the new Italian government have left their mark on Germany's outlook," said Achim Wambach, president of the Zew institute. For these reasons, adds the expert, "German industry recorded worse data than expected as regards exports, production and orders". Also the changes are not very moved: throughout the session the euro sailed below the threshold of 1,18 dollars above which it had closed the day before: it is worth 1,1784 dollars.

BOOM IN REQUESTS FOR BOTS. TODAY IS D DAY FOR BTPs

The debt market is still tense. At the end of an upturning session, also thanks to the outcome of the Bot auction, the market recorded a sudden slowdown in the final: the spread 10-year Btp/Bund closed at around 240 basis points after falling to a low of 224.

The rate of the 1-year BTP (June 2) is back above 2020%, which had fallen below this threshold in the late morning, reaching its lowest since 5 June. At 17,30pm, the 2-year rate was trading at 1,05% from 1,14% at Monday's close.
Yesterday in the morning the Treasury placed 6 billion 12-month BOTs (out of 6,5 maturing) at a yield of 0,550%, the highest since May 2014, up sharply compared to the last auction (-0,361%).
Demand has been very strong: the bid-to-cover (1,95) is the second highest since 2012, all the more significant if compared with that of today's placement of Spanish 12-month bonds (1,59). At these prices, Italian paper is highly appreciated.
Today the Treasury will offer between 4,25 and 5,75 billion euros in four securities: 3-, 7- and 30-year BTPs as well as the September 2046 off-the-run.
On the eve, on the gray market, the BTP rate expiring in April 2021 is trading at 1,21% from 0,07% (high since February 2014). The yield of the 7-year BTP (May 2025) is worth 2,50%, a marked increase compared to 1,34% in mid-May.
The 30-year bond, maturing in March 2048, traded at 3,58% from 2,88% in mid-April (this would be the highest since October 2014).

INTESA-BLACKROCK, THE AGREEMENT ON EURIZON IS CLOSE

The banking sector consolidated the gains achieved with Monday's leap (+5,8%), thanks to the influx of purchase orders in the afternoon. At the end of the session, the sector index closed in balance: +0,08%, a thread below the European Stoxx +0,18%.

The big names are not moved: Unicredit + 0,33% Understanding +0,06%. The Financial Times confirmed that the negotiations for the sale of 10-20% of the subsidiary Eurizon to Blackrock are in the pipeline.

FINECO, THE BEST BLUE CHIP, CARIGE SELLS BAD LOANS, BANCA IFIS FLIES

In managed took off FinecoBank +5%, the best blue chip. But, outside the Ftse Mib, the leap of also stands out Bank Ifis (+5,6%) which recovered more than 10% in two days after the declines of the past few weeks.

Banca Carige unchanged expects to close the sale of a first probable default package by June. “We have some offers that we are ready to close by June: three or four, for one hundred million. On other, larger operations, we take a little more time to manage the process” said CEO Paolo Fiorentino. There was a 500 million euro probable default package up for sale; the goal is for us to conclude the sale of the entire lot by the autumn.

Weak insurance: Generali -0,4% UnipolSai -1,3%.

ITALGAS FLIES ON THE EVE OF THE 2024 PLAN

Among public utility companies, Atlantia +1%. Well too A2A up 1,64%: the multiutility withdrew from the tender for solar assets offered for sale by Terra Firma in Italy.

Italgas +2,9% pending the presentation today of the plan to 2024. Kepler Cheuvreux (buy, target price at 5,3 euros) expects annual growth in the dividend of 4%.

Tim -0,2% did not react to the trade union agreement on solidarity. The share remains below 70 cents, waiting to see if and how the network spin-off operation will be carried out.

MONCLER RETURNS TO THE TOP, CAMPARI “OUTPERFORM”

Also worth noting:

Moncler +0,86% completed a full recovery from last week's low.
Avanza Campari +1,51% : Raymond James raised his target price to 7,1 from 6,8 euros, confirming the "outperform" recommendation after participating in a roadshow with management.
Cnh Industrial +0,35%: Kepler Cheuvreux remains positive and reaffirms the "buy" rating and the target price of 14,5 euros.