HOLD ASIA, DOWN PRADA. ALIBABA RAISES OFFER TO 25 BILLION
MINIMUM SPREADS. SCHAUEBLE. THE WORLD IS AT BUBBLE RISK
Sharp drop in Asian equity markets as trading resumes. Loses Hong Kong -1,1% followed by the Korean Stock Exchange. In Tokyo, the decline is close to one percentage point. Softbank is under fire -4,5%, the first shareholder of Alibaba which has achieved a rise of 12% since 28 August (the date of the announcement of the IPO of the e-commerce giant): Masayoshi Son, number one shareholder of the Japanese company has reiterated its intention not to sell shares of the group led by Jack Ma. Meanwhile, Alibaba itself has decided to exploit the greenshoe by widening the offer of shares to the market by 15%.
The IPO, therefore, reached the figure of 25 billion dollars, an all-time record for a freshman in the financial markets which at its debut reached a value of 231 billion. New disturbing signals are coming from the global economy, as reaffirmed over the weekend by the G20 and the finance ministers in Cairns. There the usual duel was repeated: the United States accuses Europe, under the leadership of Berlin, of not stimulating demand. Wolfgang Schaeuble retorted: the world is at risk of a bubble due to expansionary policies. The expectation of new negative data for the Chinese economy weighs on the price lists: the PMI index of manufacturing activity, which will be announced tomorrow morning, could for the first time in 2014 fall below the threshold of 50 points, the boundary between growth and contraction.
SIEMENS BUYS DRESSER, MERGER TESTS BETWEEN EMC AND HP
There were a couple of sensational shots over the weekend. The German Siemnes has acquired for 7,6 billion dollars in cash the control of the American Dresser, destined to become the flagship of the group's oil & gas investments. Meanwhile, The Wall Street Journal reports the resumption of negotiations between the EMC and HP to create a single large group. The final week's balance was positive, despite a modest correction in the end for the US Stock Exchanges. On Wall Street, the Standard & Poor's 500 Index rose 1.3 percent to a new record high of 2,010.4. Historical record also for the Dow Jones 1.7%, to 17,279.74. Both lists have closed in positive territory six of the last seven weeks. The European Stock Exchanges are also on the rise: the Stoxx 600 index closes with an increase of 1,2%.
Frankfurt does better, due to lower tensions in Ukraine. Paris advances by 0,4% preceded by London +0,45% which only in the final erased the Scottish shower stress. The no to independence from the United Kingdom is also good for Madrid +1,04%. Milan -0,5% is in negative territory: the recession reports the Monetary Fund.
Among Emerging Markets, the Brazilian Stock Exchange slows down -1,5% for the third day in a row. The date of the October elections is approaching and the polls indicate the comeback of Dilma Roussef, outgoing president, on the challenger Marina Silva more appreciated by the business world despite her long militancy on the left.
THE DOLLAR BRAKS BUT REMAINS SUPER LIKE IN THE TIMES OF THE BEATLES
The dollar closed its tenth consecutive week of gains, as it hadn't happened since March 1967 when Lindon Johnson sat in the White House and in the Apple studios (which had nothing to do with the teenager Steve Jobs) the recording of Sgt Pepper's Lonely Hearts Club Band. The yen closed the week at 109,64 (-1,6%) at its lowest since August 2008. The euro slipped to 1,2829 at July 2013 prices. This morning the greenback corrected: 1,2854 against the euro (-0,2%).
TREASURY AUCTIONS UNDERWAY. BTP ITALIA ON OCTOBER 20
The victory of the no votes in the Scottish referendum has restored the calm especially on the market of sovereign debt securities of the Eurozone. The Spanish bonos reaped the greatest benefit, down 11 bp at a yield of 2,20. The spread against the 1,04-year German Bund, which in turn fell to 110%, fell to 2,37 points. Great recovery also for the BTP which fell to a yield of 133%. The spread in turn drops to 2011 bp, to the values of spring 6. It is in this favorable context that the Treasury is preparing to start the month-end auctions. Today the quantity for Thursday's auction for Ctz and Btpei will be communicated. Tuesday will be the turn of the offer mode for XNUMX-month BTPs (at auction) on Friday).
The offer of long-term securities at auction on Monday 29 will be announced on Wednesday 24. Meanwhile, the Treasury has announced that the seventh offer of BTP Italia, which will last six years, is scheduled between 20 and 23 October. The novelty is that a ceiling will be placed on the requests of professional investors.
TODAY ARRIVES THE ADVANCE COUPON FOR ENI AND STM
Payment of Eni's interim dividend of €0,56 per share kicks off this morning. The six-legged dog closed the week recovering on the wave of the discovery of new fields in Angola and Ecuador, the rebound in crude oil prices and, above all, the staunch defense of CEO Caudio Descalzi by Prime Minister Matteo Renzi after the developments of the investigation into bribes in Nigeria. The second tranche of the STM coupon, equal to 0,1 dollars, will also be paid this morning. The Italian-French joint venture suffered heavy losses, equal to 4,05%, in the weekend session: the company will not supply the gyroscope to the iPhone 6. The order was won by the Californian Invensense. In the meantime, the FtseMib Mid Cap basket has changed since this morning. Cerved, Fincantieri, FinecoBank and Salini Impregilo enter, which approved a buyback of up to 10 percent of the capital.
LUXURY: PRADA FRANA IN HONG KONG, SECTOR UNDER FIRE
This morning, on the Hong Kong stock market, there was a target shooting on Prada's share -4,4% down on the prices of June 2012. This is the effect of the disappointing results of the Milanese company, which closed the first six months of 2014 with a net profit of 244,8 million euros, down by 20,6% compared to 308,2 million in the same period of 2013 due to the slowdown in the Chinese market. The anti-corruption campaign underway in the Land of the Dragon weighs on the accounts. The luxury sector has already paid a heavy toll on Friday: Ferragamo -2% and Moncler -2,3%. A difficult start to the week is looming.
ENEL, A SECOND EXTRA DIVIDEND FROM ENDESA IN THE CONSTRUCTION
Great maneuvers in sight at Enel. The company has already given the go-ahead for the purchase of Enersis, the parent company of the South American investments already held by the subsidiary Endesa which will proceed with the detachment of an extraordinary dividend of 8,2 billion. At the end of this operation, Endesa, which in the meantime will have freed itself from the debts of the subsidiaries, should proceed with the distribution of a second extraordinary dividend, probably before the OPV which will serve to increase the free float on the Madrid Stock Exchange, already scheduled for the month of November. If the market conditions are not favourable, Enel will delay phase B until next February.
FIAT, TOWARDS THE USA IN RENEGADE
The Lingotto gains speed in view of the landing on Wall Street. The advertising campaign for the launch of the Renegade, the Jeep built in the Melfi plant, has started. Meanwhile, an agreement with Mitsubishi was announced for the construction of a pick up for the European and North American markets. Meanwhile, it has been announced that the Pomigliano plant will be closed from 16 to 27 October due to the drop in demand.
TRIAL OF APPEAL FOR CATTOLICA. BANKS UNDER EXAMINATION
The credit system is coming off a mixed week, under the pressure of the first LTTRO requests and the approaching verdicts of the ECB's Asset Quality Review. Among the banks, the discounts prevail: Unicredit down 1,1%, Understanding -1,5% Banco Popolare -2%. Monte Paschi shows off with an increase of 0,6%. In the insurance sector the spotlights are on Catholic after the plunge of 6,5% following the announcement of a capital increase of 500 million euros.
