Signs of comfort are coming from the US economy and Wall Street faces technical deadlines with confidence in anticipation of Thanksgiving. But in the meantime the political front is heating up: President Biden, accused by the Democrats for not having been able to curb the rise in prices, especially fuel (elections cannot be won with petrol above 4 dollars a gallon), seek revenge with the 1.850 billion maxi reform plan that will be voted on by Congress within the weekend. House Republicans are slowing down voting procedures. The leader of the opposition in the House, Kevin McCarthy, spoke for over an hour to prevent the vote in the night. But it will go ahead anyway and Wall Street, which awaits the next appointments to the Fed, is preparing for a season of tax increases (necessary to deal with an additional deficit of 675 billion). Even more uncertain is the situation in Europe, once again the epicenter of the pandemic, and in Asia, where the big names in technology are dealing with the effects of the tightening imposed by the Chinese authorities.
ALIBABA CRUSHES HONG KONG, THE APPLE CAR STARTS AGAIN
In Hong Kong, the market most exposed to hi-tech, the index closed the week down by 1,7%. Alibaba leaves 10% on the ground: the stock is at its lowest for a month and a half after the publication of the quarter's data.
The CSI 300 of Shanghai and Shenzhen (+0,2%) was positive. Xpeng, the electric car manufacturer, retreats on the day of the presentation of its first SUV model (a threat to Tesla, which yesterday closed up 0,7% on Wall Street).
Tokyo advances (+0,3%) after the presentation of the government maneuver which provides for strong stimuli to public spending.
Seoul's Kospi did better (+0,7%) thanks to the push of LG Electronics, up 7% after Bloomberg returned to talk about the collaboration with Apple in the electric car.
INDIANA PAYPAL COLLAPSES TO DEBUT
The Indian stock market is closed after the shock of the collapse at the debut of Paytm (-27%), the ambitious freshman of electronic payments.
The dollar-pound cross is little moved. The rupee appreciates against the dollar for the third consecutive day: tonight Prime Minister Narendra Modi announced that the agricultural reform laws, those that had sparked protest in the countryside at the time of their launch, will be withdrawn.
MACY'S +21%, BEST RAISE IN A CENTURY
Even yesterday, for the tenth day in a row, stock markets moved slowly on Wall Street in search of new leading themes: Dow Jones -0,17%, S&P 500 +0,34%. The Nasdaq gains 0,45%.
Yesterday evening, after the stock market, Intuit presented the data for the quarter and the company's stock for business software gained 7%. On the other hand, the online luxury company Farfetech, following the data for the quarter, fell by 20%.
Nvidia runs (+8,1%) dragging the semiconductor index. In the aftermath, Cisco falls back (-5,5%).
Memorable recovery of Macy's (+21,1%) after raising the bar on forecasts for the end of the year.
HOT EVE FOR APPOINTMENTS TO THE FED
The 1,59-year Treasury Note trades at 1,135%. The euro dollar weakens again and falls to 0,5. Yesterday the single currency gained XNUMX%. Today we have speeches from two members of the Federal Reserve, Richard Clarida and Mary Daly.
WTI oil is up 0,2% this morning, at $79,1 a barrel; Brent above $81 as the Crude Inventories release theme continues to hold sway. China has announced that it will start lowering levels soon. At these prices, Texas crude would end the week down 2%.
THE LIRA DOES TURKISH THINGS, ERDOGAN DOESN'T GIVE UP
As if the migrant crisis with Belarus were not enough, the bizarre monetary policy arguments of Turkish President Erdogan risk opening a new flaw in the system developed by Germany towards Ankara, which rests on the principle of money against an anti- immigration. Yesterday the Turkish Central Bank, in homage to the president's theses (low rates, Erdogan argues, fight inflation), cut the cost of money from 16% to 15% against inflation of around 20 % per annum. The yield on 10-year government bonds jumped 57 basis points to 20,44%. The lira has lost another 6%. Despite the restrictive measures on capital, the devaluation since January has exceeded 30%.
COVID, EUROPE IN THE TRENCH. LANE: RATES WILL GO DOWN
The fiber of the Bull is so robust that it can withstand the most violent pushes of both the Sultan of Istanbul and the pandemic. It is the only consolation at the end of a day which confirmed, without fear of misunderstandings, that the Old Continent has returned to being the most advanced frontier of the disease which risks causing the times and methods of recovery to be reviewed for the umpteenth time. Indeed, infections have been declining since July in Africa, the Middle East and Southeast Asia, while the WHO reports that Europe is the only region in the world where deaths are rising. There are over 3,3 million new infections recorded, 2,1 million of which in the European continent starting with Russia, while deaths rose by 67% in Norway and 38% in Slovakia. It is the seventh consecutive week that COVID-19 infections continue to rise in the 61 countries WHO counts in the European region.
In this context, the chief economist of the ECB Philip Lane had it easy to raise the concerns of the hawks on rates to the sender: "We do not foresee an upward realignment - he said in a remote seminar by the Fed - also because we foresee a drop in inflation over the next year”.
DOLLAR TREASURE, 44% SOLD IN ASIA
The words arriving from Frankfurt helped to flatten the gap between two-year and ten-year bonds, easing tensions on the market. The spread between ten-year BTPs and Bunds of the same duration narrowed to 120 basis points. The rates fell respectively to +0,89% and -0,31%.
The Italian Treasury has communicated the details of the thirty-year issue for one billion dollars assigned during the week. Just under half of the amount, or a record 44% share, was placed with Asian investors.
EU EXCHANGES HOLD DOWN IN THE AFTERNOON
The fourth wave of Covid-19 slowed European stock markets only partially and the EuroStoxx 50 finished flat. The euro/dollar cross is at 1,1319, just above the lows for the period.
The main list of Milan falls by 0,59%, to 27.661 points, weighed down by the oil companies. The other markets of the Old Continent were also weak: Frankfurt -0,18%; Paris 0,21%; Amsterdam -0,3%; London -0,49%. But in the morning the markets of Switzerland, Germany and France set new all-time records.
THYSSENKRUPP QUOTES HYDROGEN
Daimler rally (+1,66%): Berenberg started hedging the stock with a "buy", saying he expects Daimler Truck, following its recent spin-off, to generate higher returns.
Fly ThyssenKrupp (+6,33%) after the announcement of the IPO of the division that deals with hydrogen.
In Paris the run of Hermès continues (+3,41%). TotalEnergie is down (-1,01%). At Investor Day, CEO Patrick Pouyanné argued that the current prices of renewables represent "an enormous bubble".
In London AstraZeneca (-0,2%) announced that its antibody cocktail reduces the risk of contracting a symptomatic version of Covid-19 by 83% in long-term monitoring. Furthermore, the therapy also reduces the risk of worsening symptoms if administered in the first three days of the onset of symptoms, according to the drug company.
In black jersey Madrid (-1,06%), where the thud of BBVA (-6%) is felt, bent by the problems of the Turkish subsidiary.
THE DEFENSIVE TITLES HOLD IN MILAN: HERA IN POLE POSITION
Few titles in contrast with the Milanese list. Among these, the more defensive sectors stand out, such as utilities and pharma. Hera advances (+1,65%), followed by Italgas (+0,83%). Amplifon did well in the health sector (+1,43%). Diasorin (+0,41%) recovers part of the sales on the eve.
GENERALI, CALTAGIRONE EXCEEDS 7%
The great maneuvers on the Mediobanca-Generali front resume. According to rumors, Leonardo Del Vecchio is preparing to ask the ECB for authorization to exceed the 20% threshold in the Bank of Piazzetta Cuccia. Meanwhile, De Agostini prepares, second Republic, to leave Generali, but seek a solution that does not damage the pro-Donnet front. As for Francesco Gaetano Caltagirone, he bought other shares of the group, increasing his stake to 7,19%. The investment rises to 7,258%, also taking into account the share of the associated company Aqua Campania.
Neglecting the other banks, with losses exceeding two points for Bper.
CNH BRAKES DOWN, IVECO IN THE BUSINESS SQUARE ON JANUARY 3
Among the industrialists, Cnh Industrial slows down (-1,1%) on the day of the Investor day of the Iveco group, in Piazza Affari from 3 January. CNH expects 2026 net revenues from industrial activities to be between 16,5 and 17,6 billion euros with an adjusted net profit of 0,6-0,8 billion, up from 0,3 billion in 2019. Achievements on Ferrari (-1% ).
PRADA IS STUDYING AN ALLIANCE WITH RICHEMONT IN E-COMMERCE
Luxury purchases with Ferragamo up 1,1%. Profits were taken on Moncler, a setback for Aeffe (-5%) after recent gains.
In the sector, Prada held court, which denied its intention to leave the Hong Kong Stock Exchange for a European listing. Patrizio Bertelli does not exclude that he may be interested in Richemont's project to create an alliance for luxury e-commerce between the subsidiary Ynap and the online retailer Farfetch.
OILS IN FORDO LIST: ENI -2%
Oil-sector stocks fell sharply after the US administration asked some major oil-consuming nations to consider releasing some of their reserves. Eni loses 2%, Tenaris -3,23,2%.
NICE FLIES TO DEBUT, RAIN OF ORDERS FOR SOMEC
Debut with a bang at the EGM of Nice Footwear, a company specializing in the development, production and distribution of shoes for leisure and sport, which leaps by 50%, to 15 euros on the first trading day Somec ( +3,8%). The group, specialized in the realization of turnkey projects, has acquired new orders for a value of 29 million euros.
