The month of May, which has always been the most complicated of the stock market year, starts in the red, as per tradition. He contributes to enforcing tradition, in addition to the bad economic and financial data coming from the economy and company accounts the new US offensive against China, accused of being responsible for the spread of the coronavirus. Donald Trump tonight told Fox News that a report will soon be released which clarifies the origins of the virus and the responsibilities of Beijing, guilty of having first hidden, then tried to cover up or conceal the data on the epidemic. The president said the United States is ready to impose new tariffs on Chinese goods.
Whether or not there is any truth in the President's broadsides, more than ever in the electoral campaign, the accusations risk rekindling the trade war, the last thing the markets need, busy, Italy in the lead, in a complicated restart after the long closure.
The Hang Seng index of Hong Kong loses almost 4%. As of this morning, all constraints on the activities of the former colony have been lifted. Down also the Korean Kospi (-1,5%) And Taiwan (-2,2%). Also theIndia (-4,5%). The stock exchanges of Japan and China are closed for holidays.
Tensions with the US are reflected in the exchange rate yuan, to its 45-day low, at 7,1565 against the dollar.
Back to suffer the US oil. The benchmark future of WTI-type crude oil, that of Texas, is down 4% to 18,9 dollars as the risk of a repeat of the crisis in the storage of the raw material grows.
Il Brent oil it consolidates its positions around $26, after last week's 23% gain.
Equity futures signal a red start to the week both in Europe (-1% London) and in the USA (S&P 500 -1,2%).
The dollar is strengthening against most of its counterparts in the world: the cross with the euro is at 1,093 (-0,4%).
PHASE 2, ITALY STARTS AGAIN WITH "ZERO SALES" CARS
In this framework, Italy inaugurates, albeit with many limitations, Phase 2, which allows a large part of the production and industrial activities "mainly devoted to exports" to be restarted. The recovery coincides with the publication of the PMI indices which measure the climate of manufacturing companies in Italy, France, Germany and the Eurozone. American industrial orders will follow in the afternoon.
When the Stock Exchange is closed, the results of the April car registrations will arrive. Discounted the negative record: sales were minimal, no more than a few hundred pieces.
THE FERRARI ACCOUNTS ARRIVE. ASSEMBLY FOR SALINI
Ferrari's quarterly accounts arrive today in this climate. Tomorrow it will be Fiat Chrysler's turn. The corporate calendar is packed: today the meeting of Salini Impregilo will be held, the new hub of the major works sector which, moreover, was beaten to the wire in the tender to win Permasteelisa.
The accounts of Intesa, Unicredit and Campari (tomorrow), Bper, Mediobanca, Leonardo, Snam, Cnh and Safilo (Wednesday) will also arrive during the week. Thursday will be the turn of Anima, Mediolanum, Bpm, D'Amico, Leonardo, Poste Italiane and Recordati. Buzzi and Ubi will bring together the board of directors.
COUPONS: ITALMOBILIARE PAYS 6,5%
Today Fiera Milano, Italmobiliare, LU-VE, Reply, Valsoia and WIIT and Aim Cofinvest will detach the dividend. In particular, the separate dividend from Italmobiliare guarantees a yield of more than 6,5%, as the coupon provides for an extraordinary component of 1,2 euro. The capital increase of Trevi kicks off.
RECOVERY FUND, IT IS. THE SWORD OF THE GERMAN JUDGES HANGES
The Eurozone's attention is focused on the fate of the Recovery Fund, which the Eurozone is expected to discuss on May 6th. But the premises are not good either in terms of timing or content. Vera Jourova, vice president of the Commission, said that the proposal for the Recovery Fund will be postponed to the "second or third week of May" and the operation of the fund for January 2021 is an "ambitious" goal. As for the contents, the question of defining the "light" conditionality behind which the Mes, the State-saving Fund equipped with a special line for the health emergency, can be activated. Meanwhile, the ECB, which is having to deal with the forthcoming sentence of the German Constitutional Court on the legitimacy of the new pandemic Qe, has not yet increased purchases via the Pepp program.
MOODY'S AND FITCH, NEW VERDICT FOR BTPs
In addition to the Recovery Fund, the judgments of the rating agencies, Moody's and Dbrs will be followed on Friday with the markets closed, a few days after the unexpected rejection by Fitch.
Among the central banks, the last to get on track after the Fed and the ECB will be the Bank of England. London will also start talks for a new trade agreement with the US.
Other central banks will meet this week: Australia and Norway will leave rates unchanged. A new cut is expected for Brazil.
AMAZON ACCOUNTS DISAPPOINT (-7%)
The most relevant US statistics of the week concern jobs: a new heavy drop is expected. Expectations today for the trend of the ISM index relating to manufacturing activity are also negative.
Closing in the red for Wall Street on May 2,6: Dow Jones -500%, S&P2,8 -3,2%, Nasdaq -XNUMX%.
The alarms of Apple, Amazon and Microsoft on the consequences of the epidemic on the economy have held the ground. Jeff Bezos, in particular, highlighted the increase in costs associated with personnel security.
BUFFETT IN RED. BERKSHIRE LIQUIDS PLANES, MUSK GROUNDS TESLA
Berkshire Hathaway reported losses of $49,7 billion in 3 months due to the pandemic. Warren Buffett's holding company has also been hit hard by the coronavirus pandemic: most of the more than 90 companies in which it has significant stakes are experiencing a considerable slowdown in revenues. Warren Buffett also sold all of his stakes in the four largest American companies, about 10% of each.
Berkshire's liquidity grew to 137,3 billion from 128 billion at the end of 2019, but the wise man from Omaha doesn't know what to buy: in the first quarter, share purchases amounted to 1,8 billion net, plus 1,7 billions of treasury shares.
MUSK: “TESLA IS WORTH TOO MUCH”. COURSE ON ENERGY AND SPACE
“Tesla's price is excessive”. With this tweet Elon Musk caused the crash of Tesla: -14 billion dollars in a single session. Tesla itself has applied to become an electricity supplier in the UK. Meanwhile, Elon Musk's other company, Space X, presented its first space mission with astronauts, which will start in collaboration with NASA on May 27.
You want to comment. Denied, even by his intelligence staff, he continues to postpone that opening
MENTAL, which he surely deems appropriate. But does he trust only himself?