Exactly one week after the start of the Fed meeting which will kick off the rate hike, the markets are getting to grips with the new situation: raw materials are collapsing, oil remains at its lowest. Piazza Affari suffers not only from common problems, but also from tensions on the banking front.
Stock markets weak in Asia, despite a mini rally in crude oil prices, back to just above 40 dollars in the Brent version (39,81 yesterday's low, the lowest since 2009). The WTI climbs back above $37. The Tokyo Stock Exchange is losing just under 1 percentage point, despite the unexpected strong growth in orders for machine tools (+10,7%). Hong Kong also down (-0,3%). Shanghai and Shenzhen are on positive ground.
Wall Street also fell: Dow Jones -0,9%, S&P 500 -0,6%. The Nasdaq -0,07% was almost unchanged, impervious to the decline in oil and raw materials.
The European markets are also down significantly. Yesterday in Milan, the FtseMib index closed the session down by 2,2%, the Paris and Frankfurt stock exchanges -1,5% and -1,9% respectively, London -1,4%. On the bond markets, expectation for the decisions of the Fed dominates. The yield on the Italian ten-year bond rises to 1,57% from 1,558% yesterday evening. The spread is stable at 98 basis points.
European markets are expected to rebound at the opening this morning: London +20 points to 6.155, Paris +9 bps to 4.690, Frankfurt +16 bps to 10.689
DOW AND DUPONT: CHEMICAL MARRIAGE OF 120 BILLION
The tensions on the raw materials front, starting with oil, help explain the new business of the century which, this time, has invested in the chemical sector. Under the urging of hedge and avtivist managers, two leading US groups, Dow Chemical and Du Pont, have decided to start a 120 billion dollar merger. But the equal merger operation (the capitalization of the two groups is similar) will be followed by the spin-off of the activities according to new business lines: petrochemicals, agribusiness and specialty chemicals.
MISTER BITCOIN (MAYBE) IS IN SYDNEY
Perhaps the mystery of the identity of Satoshi Nakamoto, stage name of the father of bitcoins, is about to be revealed. This morning the Australian police raided the home of a computer scientist, Craig Wright, who leads some companies related to the virtual currency. The operation follows the publication of an investigation by Wired which has sparked the interest of the Australian police, in search of income hidden from the tax authorities.
POPULAR IN FIGHT, BTG SELLS MPS STOCKS
The negative performance recorded yesterday by Milan, bringing up the rear in Europe, is partly linked to worries about Italian banks, the worst on a difficult day: the Eurostoxx index for the sector recorded -2,2%. There are several reasons for a bad day. The discontent of the markets due to the cost of the Salva Banks still weighs heavily, as does the slowdown on the front of mergers in the Popolari sector and the failure to create one or more Bad Banks.
Meanwhile, Il Sole 24 Ore broke the news that in January the inspectors of the ECB's joint supervisory team will arrive at the offices of the main Italian cooperative banks to check whether they have granted, on the occasion of the 2014 increases, loans in exchange for the purchase of new shares as occurred in Veneto Banca and Popolare di Vicenza.
Among the credit institutions currently listed, five have completed capital increases since 2014: Banco Popolare (yesterday -3%), Banca Popolare di Milano ( -2%), Banca Popolare dell'Emilia Romagna ( -1,5, 2,6%), Creval (-3,6%) and Banca Popolare di Sondrio (unchanged). Also down were Ubi Banca (-1,8%) and the big Intesa (-3,6%) and Unicredit (-XNUMX%).
Banks considered to be the most fragile are under pressure: MontePaschi has lost 5,5%. Meanwhile, Btg Pactual, overwhelmed by the Petrobras scandal in Brazil, reduced its stake to less than 1% from 1,9% in the days following the arrest (November 25) of the managing director André Esteves. Carige loses 3,4%.
Asset management companies are also down: Azimut -2,7%. Generali -1,4%: the Fitch agency confirmed the ratings and the outlook on the Italian sector at stable on the expectations of a good resilience of the growth and profitability levels of the companies despite the weakness in motor liability insurance, the concentration of risks and regulatory pressures.
OILS TRY TO LIMIT LOSSES
Difficult day for oil and, consequently, for oil products, despite the rebound in US prices at the end of the session. On Wall Street, Chevron limited its losses to 1%, against -2,5% at the start of the session. Exxon-Mobil -2,8%. In the segment of companies servicing oil producers, Schlumberger (-0,5%, from -3%) and Halliburton (up 0,3%) rebounded.
The European Eurostoxx Oil & Gas index limited losses to 1,2%, recovering about one and a half points from the intraday lows. Piazza Affari only partially benefited from the turnaround: Eni fell by 2,5%, Saipem -2,5%, Tenaris -1,5%.
COMMODITIES IN DISRUPTION: ANGLO AMERICAN -12%
The thud of mining stocks was more resounding, dragged down by the decline in Chinese imports of raw materials. In London, Anglo American yesterday lost 12%, to 332 pence, the lowest in its history: the company announced a drastic cost-cutting plan which provides for the elimination of 85 jobs (today there are 135 employees). Dividend payments will be suspended and assets totaling $4 billion will be sold, whereas the old plan was to sell for $3 billion.
The collapse involved the other Bigs: Glencore -6%, RioTinto -7,9%. ArcelorMittal, the world's leading steel producer, marks a 4,7% decline in Amsterdam.
ALL BLUE CHIPS IN RED: TELECOM -2,3%
Net decline of Telecom Italia (-2,3%). Today's news is that US bank JP Morgan has a potential stake of 10,1%, built on call options. The question is whether part of these options refer to the potential 15% stake of Frenchman Xavier Niel. The shareholders' meeting will be held in a week, next Tuesday 15 December.
Mediaset-2,6%. Enel drops by 2,3%. The industrialists were weak: Fiat Chrysler fell by 2,1%, Stm (-3,4%) and Finmeccanica (-2,7%) also fell sharply. Buzzi loses 3%. Enel drops by 2,3%.
LUXURY RETURNS TO SUFFER FROM CHINA SICKNESS
All the luxury stocks suffer again: Moncler -4,2%, Ferragamo -3,3%, Luxottica -2,7%, Yoox -3%. A report by Barclays analysts found that Chinese consumers have contributed about two-thirds to the growth of the luxury sector over the past decade, so fears of a slowdown have led to volatility on the sector's prices. Analysts, however, after a trip to China remain confident on long-term growth.
RCS, THE DESCENT DOESN'T STOP. DOWN ALSO Mondadori
Rcs -2,10%: it was the sixth fall in a row for the stock which updates the record low by marking a price of 0,49 euros. The stock has lost 48% since the beginning of the year. The fall reduced the stock market capitalization to less than 250 million euros. Investors are concerned about the fragility of the group's accounts and the consequent fear that it will be necessary to proceed with a capital increase to strengthen them. Mondadori also fell sharply (-6,3%).
