China is today the great unknown of the global economy and finance. The latest data confirm the slowdown in growth, not only in services but also in manufacturing. The PMI Caixin index, dedicated to private companies, confirms the drop below 50 already recorded by the official index. The drop in foreign demand, the increase in raw materials exacerbated by logistics problems and the financial weakness of real estate companies are making themselves felt.
IN BEIJING THE INDUSTRY HOLDS UP, EVEN CLOSE ON THE RIDERS
Meanwhile, the pressure of the state on the world of work is growing: this time it's the turn of the entertainment world, where "whims or effeminate attitudes will no longer be tolerated". But “leftist” signals are also arriving. On the rider front, for example. The top management of eleven companies active in delivery through people with their own transport were summoned: all were asked to document in detail the relationship between the company and the cyclists/motorcyclists who perform the final part of the service.
THE BIG IN TECHNOLOGY BOUNCE
In short, an all-round crackdown that the Stock Exchange seems to have metabolised. This morning Meituan, one of the big names in home deliveries, traded in Hong Kong at 3.690 local dollars, +40%. On Wall Street, the FANG Plus index, which brings together the ten main stocks of the technology sector listed in the USA, rebounded by 1,5% thanks to the decisive contribution of the two Chinese social media, Alibaba and Baidu.com, the most targeted by the pressures on the tech. It is too early to tell, but the feeling is that the big managers, looking for alternatives to the western price lists at the top, are starting to look with interest at the fundamentals of the much cheaper yellow companies.
China's stock exchanges are around parity after the new intervention by the supervisory authorities on the corporate world: the effect on stocks, however, this time is marginal, if not nil. CSI 300 index of Shanghai and Shenzen lists -0,3%, Hang Seng of Hong Kong +0,1%, Taiex of Taipei -0,5%.
AUSTRALIA AND KOREA DOWN, NIKKEI RISES
Elsewhere, in Asia Pacific, the Nikkei gained 0,3%. Sydney's S&P ASX 200 lost 0,9% on the day of the release of record data on the trade balance: the commodity boom pushed the surplus to 12,2 billion local dollars in July. Today the list is held back by the sluggish iron ore prices.
Seoul's Kospi loses 0,9%. In August, inflation went even further from the guard levels indicated by the Central Bank: the change in consumer prices was +2,6%, while the consensus expected +2,4%.
NEW RECORD FOR NASDAQ
US futures have not moved much. Yesterday, however, it was again a party for the Nasdaq (+0,33%) and a new record at 15.309. The S&P 500 is almost flat (+0,03%), the Dow Jones is weak (-0,14%).
Technological and utilities advance, after the reassurances of the Fed on rates.
OPIOIDS: A $4,5 BILLION DOLLAR DEBATE
The decision of a federal judge to accept the proposal of the Sackler family, one of the most powerful in America, causes a sensation: behind a fine of 4,5 billion dollars, the owners of Purdue, the company responsible for the opioid epidemic which caused more than half a million deaths in the US, come out immune from the process.
THE DOLLAR FLAPS, OIL AS WELL
WTI oil down 0,3% to $68,3 a barrel. OPEC has decided to continue along the path of production increases as agreed at the time. 80% of Gulf of Mexico facilities remain out of action after the hurricane.
The dollar and rates go down. Ten-year Treasury Notes at 1,30%, euro-dollar cross at 1,184.
WEIDMANN: YES TO LOW RATES, BUT THE PEPP MUST END
Eurozone inflation risks exceeding European Central Bank expectations as temporary factors behind its recent spike could infiltrate underlying price growth. Thus the president of the Bundesbank, Jens Weidmann, went on the attack on the monetary policy of the ECB, which, according to him, heralds a lasting increase in inflation. “The first P in the acronym 'Pepp' stands for 'pandemic', not 'permanent', and rightly so,” he said in reference to the bond-buying program, which is due to expire no earlier than March 31 . Weidmann added that an expansionary monetary policy is still appropriate, but the ECB should also prepare for the end of its emergency purchase program. For once the doves are inclined to give at least partial satisfaction to the hawks.
LAGARDE: AID YES, BUT "SURGICAL"
The vice president of the ECB, Luis De Guindos, noted that from an economic point of view, "2021 is going better than expected". In an interview, however, the president of the European Central Bank, Christine Lagarde, argued that the euro zone economy is recovering from the coronavirus pandemic and only needs "surgical" support, aimed at sectors that are still in difficulty.
MILAN +0,66%. THE MADE IN ITALY MANUFACTURE RUNS
Piazza Affari closed up by 0,66%, at 26.181 points, after having archived a June-August quarter up by about 5%.
Italy's manufacturing sector maintained solid growth in August, supported by strong demand following reopenings after lockdowns, according to the monthly business survey. The IHS Markit Purchasing Managers Index (PMI) came in at 60,9, up from 60,3 in July and well above the 50 mark that separates growth from contraction. It was the third-highest reading ever, beaten only by the May and June numbers. The Reuters consensus was 60.
On positive ground, except for Frankfurt (-0,09%), also the other markets: Paris (+1,18%), Amsterdam (+0,3%), Madrid (+1,65%) and London ( +0,43%).
FLY PERNOD, BIOMERIEUX AND DIASORIN TO THE TOP
Pernod Ricard, +3,4%, is the best European blue chip on the day of publication of its fiscal year data. The spirits and spirits company, which has returned to pre-pandemic levels in recent months, believes that growth will not stop.
Also noteworthy in Paris was the leap in Biomérieux diagnostic tests, up 5%. Same trend for Diasorin (+3,7%), at the absolute maximum.
LVMH LEAVES CARREFOUR, RUNS INDITEX
The financial company Agache, which belongs to Lvmh, has sold its entire stake in Carrefour, equal to 5,7%: an operation worth 757 million euros.
Inditex (Zara), +3,4%, and Philips, +3,5% also stood out.
In Germany, retail sales fell much more than expected in July after two months of strong growth: it is an early sign that the consumer-led recovery in Europe's largest economy could lose steam in the third quarter. The Federal Statistical Office reported that retail sales fell 5,1% month on month in real terms.
SUPER YIELDS FOR BTPs. GREECE LAUNCHES A THIRTY-YEAR ANNIVERSARY
The yield of the ten-year BTP rises to 0,70%, on the highs of the last month and a half after a maximum of 0,73%, against -0,36% of the Bund. The spread drops to 106,70.
On the supply side, after the BTP auctions at the end of the month, Germany was the center of attention yesterday, with the 30-year placement offered for 5,5 billion (18 billion requests).
Demand is also booming for Greece, which again over the thirty-year period has reported orders for over 7,3 billion.
CAMPARI TOASTS, LEONARDO FLYING ABOVE SEVEN
Leonardo did well (+2,26%), who “exceeded the technical threshold of 7 euros, which triggered the cover-ups.
On the wave of Pernod's growth in Paris, Campari is racing (+1,92%). Thanks to the formidable reception for Campari and Aperol Spritz. “Competition from Lvmh is welcome – says the CEO Kunze-Concewitz – We foresee a future in great expansion of our aperitifs”. Akros confirmed its accumulated rating with a target price of 12,7 euros. Intesa Sanpaolo instead confirmed the hold rating and the target price of 10,7 euro. Judgment also confirmed by Mediobanca securities, which has a neutral rating on the stock and a target price of 10,6 euros.
BANKS AND UTILITIES GOOD, CHIPS HOLD STELLANTIS BACK
The banks did well, with the big Unicredit up by 1,4% and Intesa Sanpaolo by 1,1%. At stake Mps (+0,2%) awaiting developments in the negotiation with the institute led by Andrea Orcel.
Stm retraces (-0,1%) after a sharp rise in the first part of the session. The chip emergency slows down Stellantis (-0,6%). Sale Pirelli (+1,3%). Among regulated utilities, Terna rebounds (+2,27%) followed by Italgas (+1,67%) and Enel (+1,13%). Money on the oil sector. Eni leaps by 0,6%, negative Saipem (-0,9%), while Maire Tecnimont rises by 0,9%.
AUTOGRILL CONQUERS BALI. BUSINESS EAST FOR GIGLIO AND DBA
In the rest of the list, strong earnings for Autogrill (+2,74%) which was awarded a new contract for the opening of another six points of sale inside the International Airport of Bali, in Indonesia. Money also on Mediaset (+2,88%).
Dba Group (+8,31%) shines on Aim, which received the assignment from the Slovenian public body Arnes, through a tender procedure, for the supply of computers that implement the most advanced market standards on the subject of energy efficiency. In detail, the task was entrusted to the subsidiary Unistar LC doo
The good momentum of Unieuro continues (+3,4%). Conversely, Interpump slows down (-1,9%). Giglio Group also runs (+3,7%) after the exclusive cooperation agreement for Italy with Edrone, a Polish company based in Krakow, an expert in Marketing Automation software for e-commerce.
Dba Group shines on Aim (+8,31%): the company won the tender of the Slovenian public body Arnes for the supply of computers.
