Trade peace between the US and China is approaching and Donald Trump is targeting the other great enemy: the European Union. Yesterday evening the US announced tariffs for 11 billion dollars in response to EU aid to Airbus, thus reopening a decades-old dispute between the European group and Boeing. But most of the products affected by the retaliation have nothing to do with planes: cheeses, from Parmesan to Roquefort, olive oil, hams. In short, a message modest in size but eloquent on a political level addressed to Europe in the wake of the decisions on Brexit and tomorrow's EU directorate. The markets, on their highs after the long rally, smell the air of difficulty. Therefore, while remaining close to the highs, the lists are more cautious as they wait to understand from the quarterly reports the extent of the slowdown in the global economy which should be confirmed tomorrow by the IMF's spring report. Meanwhile, on the market front, in practice only oil moves, supported by the winds of war in Libya.
TOKYO -0,15%, THUD OF BOEING AND GENERAL ELECTRIC
Flat calm in Asian stock exchanges. Tokyo loses 0,15%, minimal movements also for the Chinese stock exchanges awaiting the developments of the summit between Beijing and the EU.
The euro takes courage, bouncing this morning to 1,1265 against the dollar. The pound rose above the 1,30 barrier.
Wall Street is also losing momentum close to the start of the earnings season, which will kick off on Friday with JP Morgan, Wells Fargo and Delta Airlines. The S&P 500 index +0,10%, however closed higher for the eighth session in a row. NASDAQ +0,19%. The Dow Jones slows down (-0,32%).
The downturn of Boeing -4,4% which announced the cut in the production of the 737 Max weighs on the Dow. Another stock in the red General Electric -5,2% after the cut of JP Morgan to reduce.
BRENT AT HIGHEST OVER 71 DOLLARS
Oil at its highest since November: Brent traded at 71,34 dollars this morning under the pressure of various geopolitical factors: the clashes in Libya, around the Tripoli airport but also the US escalation against Iran and the expectation of the outcome of the elections in Israel.
Eni (-0,5%) declared that, for now, “the situation in the camps (in Libya) is under control and we are monitoring the evolution of the situation very carefully. Eni has no personnel currently present in Tripoli". Saipem -0,4%.
Gold benefits from geopolitical tensions and returns to 1.300 dollars.
FLAT BUSINESS PLACE, FRANKFURT HOLDS DOWN
Operators at the window yesterday awaiting the key appointments of the week: the British premier Theresa May and the leader of the Labor party, Jeremy Corbyn, are trying to reach a common position in view of tomorrow's extraordinary summit of the European Council which will have to pronounce on the request for postpone exit from the EU. Also tomorrow the ECB directorate will be held with the subsequent press conference by Mario Draghi. In the meantime, the euro makes a timid recovery against the dollar. Surprisingly, investor morale in the eurozone improved in April to its highest level since November, thanks to signs of recovery in China.
Piazza Affari is almost flat (+0,06% at 21,771,96), in line with Paris (-0,8%).
London is also positive, supported by the drop in the pound in view of the European summit in which Theresa May will try to obtain a postponement for London's farewell from the EU beyond the date of April 12, the British premier will meet Merkel and Macron to seek support in this sense.
Frankfurt loses ground (-0,3%), held back by new negative data on trade: exports in March fell by 1,3%, to 108,8 billion, imports -1,6% to 90,9, 0,76 billion. Madrid was also weak (-XNUMX%).
STOPPED THE SPREAD WAITING FOR THE AUCTIONS
Tomorrow the 12-month Bot auction will be held: bonds for 6 billion euro will be offered, against a similar amount maturing.
Tomorrow the 12-month Bot auction will be held: bonds for 6 billion euro will be offered, against a similar amount maturing.
The debt market was also little moved on the eve of the mid-month auctions.
The yield differential between Italy and Germany on the ten-year stretch stopped at 249 points, in line with Friday's closing (250 points), after fluctuating between 247 and 250 points. The 2,49-year rate settled at 2,48% from XNUMX% at Friday's close.
Tomorrow the 12-month Bot auction will be held: bonds for 6 billion euro will be offered, against a similar amount maturing.
During Thursday's medium- and long-term auction, the ministry will make available to investors between 6,25 and 7,75 billion euros in three-, seven- and 7-year BTPs, including the new seven-year one. The new security, maturing on July 15, 15, will detach a coupon of 2026%, compared to 2,1% of the current November 2,5 benchmark.
JAPAN BUYS BTP FOR 81,4 BILLION YEN
Japanese investors bought 81,4 billion yen of Italian government bonds in February, Tokyo's finance ministry said overnight. In January, net purchases of Italian debt by Japanese investors amounted to 89,3 billion yen.
Spain will also be knocking on the markets in the coming days. On Thursday, 6,5 billion euros will be offered in the new 5-year bond.
Rating agency Dbrs revised Portugal's outlook upwards on Friday to positive from stable, leaving its rating unchanged at 'BBB'.
BIG MANEUVERS ON THE DEF
The maneuvers have started in view of the presentation of the Def. Italy will likely raise its 2020 deficit target to around 2,1% of gross domestic product, but the number could be revised upwards again after the summer.
Next year's GDP growth will be brought to just under 1% from the current forecast of 1,1%.
The government will update its macro and public finance objectives again in September, when it will have to find, we don't know how, a way to avert about 23 billion in VAT increases.
Claudio Borghi, Northern League chairman of the House Budget Committee, said last month the government could undo the VAT hikes simply by letting the deficit grow above the 3% limit set by European rules. This proposal should be rejected by Economy Minister Giovanni Tria, who is also grappling with requests from the League to introduce drastic tax cuts.
FCA FLIES AFTER THE ELECTRIC DEAL
In Piazza Affari, FCA shone +1,89% in the wake of the agreement with Tesla which will make it possible to offset the emissions of vehicles produced to comply with the emissions parameters imposed by the EU.
The rumors about an agreement on the electric car of Tesla, aimed at respecting the EU rules on emissions. Additionally, ratings agency DBRS upgraded FCA's credit rating to BBB from BB with stable outlook citing solid cash generation and sizeable debt reduction.
DEUTSCHE BANCK PUSHES STATES TO HISTORIC RECORD
Also prominently featured Italian post: +1,37%, to new all-time highs. Deutsche Bank has started hedging the stock with Buy and a target price of 10 euros.
The banking sector was negative on the hypothesis of a drop in US rates. Bpm bank (-1%) was no exception, after the words of CEO Giuseppe Castagna on the hypotheses of future mergers: discarded Monte Paschi Bank, possible arrangements with Bper o Ubi.
Weak too Tim (-0,8%): Fitch cut its rating to "BB+", while maintaining a positive outlook.
Minus sign also for the luxury sector: Moncler -1% Salvatore Ferragamo -1,5%.
DE LONGHI LEAP FORWARD. PLACEMENT FOR TECHNOGYM
De Longhi (+7,25%) took flight on the prospect of buying Evoca Gaggia (worth 1 billion). Banca Akros has raised its rating from reduced to neutral, confirming the target price at 21 euro.
Great performance forAnd Price (+3,74%), which has signed an agreement for the supply and support of the offer of large household appliances in the 50 Carrefour Italia hypermarkets.
Molmed (+10%) continues the rally that began after the authorization for clinical trials of CAR-T CD44v6. The shareholders' meeting will be held on 30 April which, in a single call, will decide on the renewal of the corporate bodies.
In the spotlight today Technogym. Wellness Holding, the company owned by Nerio Alessandri which holds a stake of 51,74% of the capital, has started the sale of 14 million ordinary shares, equal to 6,96% of the capital. Citigroup will handle the transaction. x}]})},
