While awaiting peace on tariffs, Wall Street celebrates Mickey Mouse. Walt Disney dominated the day thanks to the meteoric start of its streaming services: over 10 million subscriptions were signed on the first day of the offer, a result that pushed the stock up by 7,3%, putting Netflix in crisis (-3%) and allowed the S&P 500 index to touch a new record at 3.094 points (+0,07%).
BEIJING'S ECONOMY HOLDS BACK, HONG KONG ON FIRE
We like less the film on tariffs which has now taken on the trend of a somewhat boring soap opera, unlike the live TV coverage of the impeachment hearings. The Wall Street Journal he says that Beijing does not intend to sign an agreement that provides for a specific economic commitment, while Trump has already advertised to his audience a sale of 50 billion dollars a year in soybeans, pork and other agricultural products. There would also be a gap between the parties on the forced transfer of technology for companies wishing to do business in China and on the mechanism for implementing the agreement.
The impasse on tariffs together with the dramatic news arriving from Hong Kong now one step away from the insurrection (and repression) have apparently not affected Chinese stock markets too much: the Shanghai Stock Exchange gains 0,1%. waiting for new public interventions to support the economic situation. The data, in fact, signal a new slowdown in the economy: according to the numbers released last night, industrial production rose by 4,7% in October, less than forecasts (+5,2%). Retail sales also slowed: +7,2% from +7,8% in September.
The yuan is gradually weakening, this morning we are at 7,03 against the dollar. The yen appreciated for the fifth day against the dollar, at 108,7.
The other markets were also weak: Tokyo's Nikkei lost 0,7%, Singapore's Strait Times 0,4% and Jakarta's JSX 1%. The Kospi of Seoul increased: +0,4%.
POWELL DOESN'T LIGHT UP THE MARKET, THE GOLD SHINES
The US markets moved little on the day of the first congressional hearing of Fed chairman Jerome Powell who limited himself to reiterating what he had already said on the occasion of the last rate cut: the economic scenario, he said, was geared towards growth but there it is always the willingness to intervene in the event of a worsening of the economy.
The Dow Jones index rises by 0,33%, Nasdaq -0,05%.
The rise in market rates is taking a break, the 10-year Treasury Note drops to 1,87% yield, from 1,95% yesterday.
Gold excelled, climbing back to 1.462 dollars, moving away from the lows of the last three months. But he also deserves mention of the "resurrection" of diamonds after a long negative phase. De Beers announced yesterday that monthly sales climbed back to $400 million to a low of 297.
Brent oil is up 0,5% to $62,7, after +0,7% yesterday. The OPEC secretary general warned yesterday that during 2020 the supply of crude oil arriving from countries outside the cartel could be at risk of sharp reductions.
NORTH LB RESCUE GUARANTEED BY PUBLIC INSTITUTIONS
A day of realizations on European price lists, in vain waiting for positive signals on the duties issue, especially on cars. The climate favored profit-taking on banks and renewed interest in safe-haven assets. However, the underlying trend remains positive and risk appetite does not drop much, also because on Wall Street, the S&P 500 has equalized the initial decline. Gold excelled, climbing back to 1.462 dollars, moving away from the lows of the last three months. But the "resurrection" of diamonds after a long negative phase also deserves mention. De Beers announced yesterday that monthly sales climbed back to $400 million to a low of 297.
But the most significant figure is the green light from the European Union to rescue a German bank, Nord Lb. The German public entities that go to the rescue with 3,6 billion euros have been equated to private entities, a lesson for any upcoming banking crises in Italy.
EUROPEAN LISTS IN RED, MADRID IS THE WORST
Piazza Affari followed the general trend. The index (-0,86%) stopped at 23.578 points, in a day of letter for the banks at the continental level.
The worst market was Madrid (-1,17%), grappling with an attempt at a new left-wing government after three years of uncertainty and four general elections.
More contained losses in Frankfurt (-0,4%); Paris -0,21%; London -0,17%.
THE YIELDS OF BTPs RISE AT AUCTION
Treasury auctions are doing well but with rising yields. The market absorbed the 7,25 billion offered, but at increasing rates: in particular, 1,5 billion 30-year BTPs were placed at a yield of 2,29% from 2,03% in October, requests equal to 1,73, XNUMX times the offer.
0,30-year German Bund yield down to -0,25% from -XNUMX% yesterday.
PRYSMAN BLACK SHIRT IN MILAN
On the Piazza Affari price list, Prysmian (-7,16%) took the black spot, in the aftermath of the results that signal a slowdown in demand from telecommunications customers. Morgan Stanley has lowered the target price.
However, the index was particularly affected by the decline in banking, under pressure throughout Europe. Unicredit and Intesa dropped approximately 2% in line with the sector average, followed by Banco Bpm (-1,8%) and Intesa (-1,4%). In contrast, Bper (+0,7%), in the wake of the declarations of CEO Vandelli who argued that 2020 will be the right year for a further restructuring of the banking system. The boom of Popolare Sondrio deflates: -9% from +14% on the eve.
BANKS IN RED. DEL VECCHIO PROMOTES NAGEL
Mediobanca was also in the red (-0,80%). In a note, Leonardo Del Vecchio claimed that he wants to help create a long-term stable shareholder base to help Mediobanca and Generali, of which the bank is the largest shareholder, "to grow and be successful in the world". "The Mediobanca plan presented by the CEO Alberto Nagel presents challenging objectives that go in the direction desired by Delfin", says Del Vecchio in the note, adding that he "appreciates the effort made by the management" and is "satisfied with the economic results achieved" .
CARS: THE PININFARINA WARNING ARRIVES
Day of realizations on the car while waiting for Trump's decisions. Pirelli suffers in particular (-3%), followed by Brembo (-2,4%). FCA -1,14%, Ferrari -0,4% on the day of the announcement of the "Rima", the new Ferrari racing car.
Pininfarina's warning arrived in the evening: the company revised downwards its guidance on the value of production for 2019, seen down by 12% compared to the previous estimate of a 10% reduction. At the end of September, the company active in the car bodywork sector recorded a drop in production value of 9,2% to 68,8 million, reflecting the "suspension of some engineering orders" announced in the 2018 accounts.
SAFILO BOOM WAITING FOR THE BUSINESS PLAN
Day of rebounds for the titles of the most sacrificed luxury. Salvatore Ferragamo advances by 4% despite the decline in sales in the quarter, still better than expected, notes Equita.
Boom for Safilo (+11,4%) after a 2,2% increase in turnover in the three months in line with expectations. But attention is focused on the next presentation of the business plan.
Mediaset slows down (-1,7%) in the face of uncertain data on advertising. The CFO Marco Giordani has ruled out the launch of an offer on ProsiebenSat 1 after the recent purchase of 15%, according to Equita "a defensive move against the US giants in a very challenging sector scenario".
D'Amico's leap (+7,6%) after the accounts should be noted.
