Argentina, Brazil, China. But above all France and, soon, Italy, Austria and Türkiye. The trade offensive launched by Donald Trump spares no one. And the reflections on the Stock Exchanges were not long in coming.
Tokyo Nikkei -0,6%. CIS Composite of Shanghai and Shenzen -0,2%, Hang Seng of Hong Kong -0,1%, Kospi of Seoul -0,4%. The worst stock exchange in Asia-Pacific is that of Sydney: -2,2%. The central bank of Australia has confirmed the cost of money on current values.
The dollar-Japanese yen rate, an indicator of risk appetite, closed 0,5% lower yesterday, rebounding to 109,2 overnight. The Chinese yuan dollar cross is at a four-week high at 7,039.
The American markets were also in the red: Dow Jones -0,95%, S&P 500 -0,86%. The Nasdaq is worse: -1,12%.
TRUMP HIT FRANCE FOR THE WEB TAX
The anger of the US administration has hit Europe in particular, France in primis. Duties of 2,4 billion euros on French goods (wine, cheese and bags) were announced overnight in retaliation for the digital tax imposed by Paris on large web companies such as Apple, Amazon and Google. However, the office of Robert Lighthizer, the White House representative for trade, has warned that the same measure could affect Austria, Turkey and Italy.
ARGENTINA AND CHINA ALSO UNDER FIRE
Previously Donald Trump had announced in a tweet the re-introduction of duties on steel and aluminum arriving from Brazil and Argentina. In the afternoon, a new initiative, the secretary of Commerce, Wilbur Ross, says in a television interview that if the negotiations on trade with China are not concluded by December 15, the White House will impose on Beijing the new tariffs already announced.
The euro strengthened to 1,1075 against the dollar, both due to the reawakening of German industry, witnessed by the unexpected growth of some leading indices, and due to the disappointing data on US manufacturing which arrived yesterday afternoon.
PLACE OF BUSINESS PAYS THE HIGHEST PRICE
The month of December got off to a bad start, especially in Europe, due to the poisoned "gifts" on tariffs with which Donald Trump preceded himself in view of the trip to the Old Continent for NATO's birthday.
Piazza Affari paid the highest price for the sudden freeze, dropping by 23 points to 22.728: -2,28% compared to Friday's closing.
It hangs over the Italian stock exchange the fracture within the government on the Mes. During the briefing to Montecitorio on the state-saving fund, Prime Minister Giuseppe Conte reiterated that all the ministers of the past government and Parliament have always been informed and that no document has been signed. Economy Minister Roberto Gualtieri will ask for changes to the Mes tomorrow at the Eurogroup in Brussels.
The rest of the Eurozone is also in deep red: Frankfurt -2,02%.
Lufthansa closes in the red (-1,25%), up 1,57% in the middle of the session in the wake of press rumors according to which Qatar Airways is considering the possibility of acquiring a share. Paris -2,01%; Madrid -2,05%.
More limited liabilities for London (-0,83%). Online supermarket Ocado fell 5,8% after launching a £500m ($642m) bond issue, partly to finance its construction of robotic warehouses.
OIL: STOCKS FALL, PRICE GOES UP
Brent oil was trading at USD61,1 a barrel this morning, up 0,4%. Bloomberg reports that OPEC countries' production fell by 110 barrels a day in November. US oil inventories are expected to have fallen for the first time since mid-October last week.
The Italian financial day was conditioned by the increase in the spread. The spread between Italian and German ten-year bonds rose to 161 basis points (+1,81%), with a BTP yield of 1,33%, despite the parallel increase in value of the Bund in the afternoon.
The 0,028-year Bund rate rose to -XNUMX%, the highest in the last five months. The markets thus reacted to a possible increase in German public spending following the success of the party's left-wing SPD congress.
EXOR PAYS CIR FOR GEDI 102,4 MILLION
Utilities paid the highest price for the rise in yields, all in deep red: Enel dropped 3,7%, Terna -3,3%, Italgas -4%.
However, the market's attention yesterday focused on publishing, awaiting Cir's decisions (+12,21%) on Gedi's fate (+12,21%), suspended for the entire session pending a response to Exor's advances (-1,99%). The holding company of the Agnelli house, already a shareholder with 6%, announced after the conclusion of the board of directors that it had agreed with Cir the acquisition of its stake in the publishing company that controls Repubblica and Stampa at 0,46 euros per share for a total amount of 102,4 million euros. The price includes a premium to Friday's close of €0,24 close to historic lows. The share is charged to the Cir budget at 273 million.
Within the first quarter of 2020, Exor will proceed with the launch of a tender offer for the same price on the shares not held. The outcome of the operation will depend on the possible delisting of the shares of the subsidiaries “La Repubblica” and “La Stampa”. Cir has announced its intention to reinvest a 5% stake in the new company.
Rcs also rose: +3,4%.
JUVENTUS KEEPS IN THE START OF THE INCREASE
Returning to the Agnelli galaxy, Juventus (-0,59%) is one of the best big caps on the day of the start of the capital increase.
FCA -0,95%: group registrations in Italy in November were still down, equal to 34.033 vehicles (-4,08%) in a growing market (+6,08%).
UNICREDIT (-1,5%) WITHDRAWS FROM Türkiye
Banks are slowing down: Unicredit (-1,5%) announced that it has reduced its stake in the Turkish Yapi Kredi Bank to less than 32%. The restructuring of the holding will have a positive impact on the Common Equity Tier in the order of five basis points.
FinecoBank 1,2%. Intesa Sanpaolo -1,3%.
Banca Monte Paschi loses 3%. Amco, the Asset Management Company controlled by the Treasury for the management of non-performing loans, will make a capital increase of 1 billion euros within the year. Part of the proceeds could be used to acquire part of MPS's problematic loans.
RECORDATI, AMPLIFON AND LEONARDO UNDER FIRE
The Atlantia dam yields (-2,4%) under pressure from the Five Stars who ask for the concession to be revoked. In the afternoon, the stocks most sensitive to the trend in trade negotiations fell sharply: Moncler -2,4%, Buzzi -2% and Prysmian -2%. Worst of all Recordati (-5,02%), Leonardo (-4,3%) and Amplifon (-4,07%).
