Opening of the week in red for the European price lists. Piazza Affari loses 0,61% and closes at 19.171 points, weighted by the banks, with the issue of NPLs returning to the attention of investors. MPS drops 10,19%, following the letter from the ECB formulating recommendations for the coverage of non-performing loans. Timidly positive Telecom, +0,2%, after the board of directors called the meeting for March 29, which will also decide on Vivendi's requests.
Fractional discounts for Frankfurt -0,3%; Paris -0,39%; Madrid -0,7%; London -0,91%; Zurich -0,79%. Sales in Europe follow those in Asia, while Wall Street is in negative territory. In New York, Citigroup kicked off the earnings season for US banks with weak results. However, the stock has reversed course from pre-market losses and is currently on the upside.
The overall picture is one of risk aversion, following new confirmations of an economic slowdown in China and in the Eurozone. The trade war took its toll on Chinese trade in 2018, which grew less than the previous year. In December, in particular, exports to the United States decreased by 3,5%. President However, Donald Trump remains optimistic on the ongoing negotiations and on the possibility that an agreement between the two countries will be reached. Industrial production also confirmed its decline in Euroland: -1,7% on a monthly basis (-1,5% consensus) and -3,3% on an annual basis (-2,1% consensus).
To the macro data are added, as elements of global uncertainty, lo longest shutdown in history of the United States (now in its 24th day) and the crucial vote in the House of Commons tomorrow on Brexit, or rather on the text of the agreement negotiated by Prime Minister Theresa May with Brussels. A rejection seems probable, despite May judging this choice a catastrophe in the short term.
Between the raw material oil, Brent yields 0,66% and is worth 60,08 dollars a barrel. Gold remains solid, just above 1290 dollars an ounce. Euro-dollar in favor of the single currency, with the exchange rate around 1,147.
In Piazza Affari the best blue chips of the session are Juventus, +2,45%; Unipol +0,85% and Unipolsai +1,03%; Snam +0,76%; Amplifon +0,89%. Among the worst big caps is Moncler, -2,66%, a symbol of a luxury that fears the decline in purchases by the rich Chinese. Down Leonardo -2,36%.
The weakest banks are Bper -3,85%; Banco Bpm -2,39%; Ubi -2,34%. Outside the main price list, the worst is Mps, which loses more than 10%. In addition to the doubts expressed by the ECB last Friday with the Stock Exchange closed on the ability to achieve the results of the restructuring plan, the stock also suffers from the cut of the recommendation from 'buy' to 'neutral' by Banca Akros analysts.
As already reported Telecom closed slightly higher on the day when the board has set the date of the assembly at the end of March. On that occasion, the company will also have to decide on the request of the first shareholder Vivendi to review the balance of power in the board in its favour. The French are very disappointed by the long wait and in a note they clarify that "if the company's governance and financial results do not improve significantly, Vivendi reserves the right to request the convening of a new shareholders' meeting in the summer".
Finally, bonds: after a morning in negative territory in a climate of risk aversion, in the afternoon, the Italian secondary reversed course and the spread between Italian and German ten-year bonds narrowed by 1,06% to 261.80 points; the yield of the 10-year BTP is 2,85%.
