Kim's missiles and Trump's grit, who will gather Republican senators today to tighten ranks in view of the battle for tax reform, keep the markets' attention high. But the spotlights will also be focused on the debut before the Banking Committee of Jerome Powell, the future president of the Fed, who must face the vote of parliamentarians.
It will be the occasion for a first test of the interest rate orientation of the new most powerful banker in the world. However, the winds of war that are blowing again from Pyongyang are worrying the markets in the region: Japan's listening facilities have intercepted radio signals relating to an imminent launch of a missile by Kim. South Korea's stock market is mixed, Kospi index +0,2%, Kosdaq index -1,2%. Tokyo falls by 0,4%. The Indian Stock Exchange moved little.
The Korean threat, moreover, adds to the signs of weakness coming from China. The CSI300 index of the Shanghai and Shenzhen stocks fell another 0,8%, to the lows of the last three weeks. Hong Kong's Hang Seng was also weak (-0,8%), returning from a long streak of increases. Only Thursday, when the official PMI data will be released, will it be possible to assess the extent of the slowdown in the economy driven by the authorities, determined to cool the engine and intervene on debt.
FED, TODAY THE FIRST TEST FOR POWELL
In this context, the upward pressure on the euro seems destined to lose strength, which in any case is still hovering around 1,19 against the dollar. The US currency recovered in the evening, also due to the statements of a member of the Federal Reserve, in no uncertain terms, in favor of an increase in the cost of money. In the past, the voting member of the Federal Open Market Committee had made much softer statements on interest rates. This is another reason why Powell's hearing becomes important.
CYBER MONDAY SENDS AMAZON TO THE STARS
Wall Street set a new record with the Dow Jones, +0,1%, also thanks to the news from the real estate market. The Nasdaq and the S&P500 are down slightly.
The world these days is shopping online and buying Amazon: +2,2% to 1.209 dollars, an all-time high.
The price of Brent oil dropped slightly, at 63,8 dollars a barrel two days after the OPEC summit in Vienna.
At Piazza Affari they slow down Tenaris (-2,41%) And Saipem (-2,22%). Unchanged Eni, which signed an agreement that assigns 48% of the rights to the onshore block of Cabinda North in Angola to the Italian major, of which Eni also becomes the operator.
THE BLACK JERSEY IN MILAN, MADRID THE BEST
Euro up, oil down. And the sword of Damocles of sanctions on the dieselgate front on FCA. Several factors contributed to reducing the positive effect of the probable (but not quick) agreement for the formation of the German government. Still high, then, the tensions on the front of the banks. Futures signal a weak start for the markets of the Old Continent.
Milan, under the pressure of credit titles, was the worst stock market. The Ftse Mib index (-1,07%) slips below 22 thousand (21.176 points). Only Madrid (+0,1%) closed in positive territory. In view of the elections in Catalonia on 21 December, the newspaper El Paìs published a survey which shows that only 25% of Catalans are in favor of separation from Spain.
Weak Paris (-0,56%) and London (-0,35%). Frankfurt -0,46%. Negotiations to form a new German "grand coalition" with the Social Democratic party may not begin until next year, according to Julia Kloeckner, Merkel's party vice president.
CTZ YIELDS LOW. SPREAD AT 145
The Italian secondary closed the first session of the week higher, slightly better than the rest of the Eurozone.
In addition to the support from the political front in Germany, the Italian paper benefited from the Treasury's decision not to offer the 5-year bond in the next medium/long-term auction, with a correspondingly lighter offer.
In closing, the yield differential between the ten-year BTP and the Bund fell to 145 basis points. The 1,79-year benchmark rate traded at 1,83% from XNUMX% at the end of the last session.
After yesterday's Ctz auction (with the rate at a new all-time low of -0,337%), the month-end placement round continues today with the six-month BOT.
Also in this case, the yield is seen to be declining and could mark a new all-time low given that at the close, on the Mts gray market, the Bond rate maturing May 31, 2018 fell to around -0,408%, close to the drop to the all-time low of -0,400% at the end of October.
Next Wednesday's medium-long auction will be the last with regulation for 2017, after the cancellation of the mid-December Btp offer.
ECB LAUNCHES PLATFORM FOR NPLs
The European Central Bank has suggested the creation of a new one single private platform for trading non-performing bank loans, which helps to launch a market that would have highly beneficial effects on the balance sheets of credit institutions. A possible solution – writes the ECB in its six-monthly report 'Financial Stabilty Review' – would be to develop a new single platform that acts as a database for non-performing loans, an trading system and an archive of trading data. The stock of NPLs (non-performing loans) in the portfolios of banks in the Eurozone is currently equal to approximately 800 billion euros.
THE FORMER POPULAR STILL UNDER PRESSURE
The news from Frankfurt on the birth of a real non-performing credit market for the benefit of the sale of NPLs had a momentary positive effect on the sector. But, after returning to positive ground in the middle of the day, the banking index lost ground: the sector closed at -1,25%.
In the crosshairs the former Popolari, the most exposed to the Npl dossier. Bper Bank leave 3,29% on the ground. Bpm bank -2,79%: a Moody's report indicates that the institution needs to carry out further sales of NPLs and this will put pressure on the bank's solvency, which will need to increase coverage to facilitate these operations. Moody's recalls that Banco BPM is reducing the stock of NPLs faster than announced but the level of these credits remains higher than the average for the Italian banking system.
The rating agency Dbrs downgraded its long-term credit rating by Ubi (-0,20%), taking it 'BBB' from 'BBB' (high), with a stable trend. Also in this case the decision was motivated by the level of non-performing loans. Weak too Understanding (-1,85%). New landslide for Carige (-2,38%).
Bucking Monte dei Paschi Bank (+ 2%) and the Valtellinese credit (+2,48%). On positive ground too believe (+ 0,84%).
THEY ONLY HOLD THE UTILITIES
Only the utilities index rose +0,4%, the safest port in times of turbulence. Advance Terna (+0,69%). he defends himself Atlantia +0,07%. Miss some shots Enel (-0,56%), despite Deutsche Bank raising the target price of the stock from 5 to 5,4 euros, confirming the hold recommendation. Equita confirmed the Buy recommendation by raising the target to 6,0 euros from 5,65 euros.
Italgas e Snam both -0,5%.
THE DOLLAR (AND FRANCE) HOLDING DOWN FCA
The stocks most linked to the dollar area are under fire. Industrial Driver's License retreats 1,4% -1,4%, Buzzi -2,2%.
A mixed day for Fiat Chrysler (-0,95%). The positive effect of the placement of a stake of around 50% within the first half of 2018 of Magneti Marelli (and perhaps also of Comau), for a price between 4 and 6 billion, was nullified by the news from Le Monde on the risk of a maxi-fine (9,6 billion euros) for the accusation of having installed a device capable of distorting emissions. The company refuses any type of charge.
Among the few positive titles Ferragamo (+0,68%). Instead, slow down on Cyber Monday YNap (-1,21%, to 27,72 euros). Barclays confirmed the recommendation of the equal-weight stock and the target price at €27,25.
In decline Mediaset (-1,62%), after the CFO Marco Giordani cooled the hypotheses of an imminent agreement with Vivendi. Bad too Tim (-1,94%).
GIGLIO GROUP FLIES THANKS TO THE MARKETPLACE
The worst title was Astaldi (-7%). Among the best, for once, The Sun 24 hours, with a leap forward of 3,3%, to 0,98 euros. The group announced the conclusion of the option offer of 52.012.476 special shares issued at €0,961 each, resulting from the paid capital increase approved by the Extraordinary Shareholders' Meeting of 28 June 2017.
Great performance by Lily TV (+3,5%). The company has launched iBox Marketplace, a global multi-brand platform created to complement traditional e-commerce models by simultaneously connecting the world's main marketplaces. The company has developed an innovative business channel through an exclusive technology capable of simultaneously connecting over 40 marketplace platforms around the world (from America to China) and covering, through its own logistics structure made up of three main hubs in Italy, USA and China's most important online marketplaces, significantly reducing shipping times.
