North Korea has removed the loudspeakers from the border that for decades have been spreading the regime's propaganda and threats towards the enemies of the South. Thus the signs of détente are consolidated. Stock exchanges take advantage of it, but in moderation. In fact, today the lists of China and Japan remain closed, thus anticipating the May Day holiday, which tomorrow will involve a large part of the markets, excluding the USA.
T-MOBILE BUYS SPRINT: 5 G AVAILABLE FOR ALL USA
In the United States, however, the first big coup of the week already took place last night. On the third attempt the merger went through between T Mobil (controlled by Deutsche Telekom) and Sprint (majority owned by Softbank), in third and fourth place respectively on the US market. The operation, all on paper, provides for the sale of the majority of Sprint for 26 billion dollars. Deutsche Telekom drops to 42% of the capital, Masayoshi Son, the shareholder who controls Softbank, will have to settle for 27%. The new company, with 126 million subscribers, will now be able to contend for leadership with Verizon (150 million) and AT&T (140) by accelerating investments for the construction of a national 5G network (today T Mobile already manages the service in 30 cities) .
BEIJING POSTPONES RULES FOR FUNDS: FLY HONG KONG
Positive start for the few open Stock Exchanges. South Korea (+0,6%) celebrates peace signals with Kim. Hong Kong made a big splash (+1,6%) after the measures taken on Friday night by the People's Bank of China. The central institute has granted a one-year grace period to the asset management industry, a system that is worth 100 trillion yuan, equal to 13 trillion dollars: the new administrative and accounting rules, much more restrictive than those currently course, will enter into force at the end of 2020 and not in June next year, as was previously set. Above all, banks and insurance companies have risen in the Hong Kong list, threatened in recent weeks by the continuous increase in the wholesale cost of money.
Meanwhile, Beijing's industry is slowing down, but less than expected: the PMI index is 51,3, slightly down on previous months. In positive territory also Mumbai (+0,5%), Taiwan (+0,9%) and Sidney (+0,3%).
THE EURO IS LITTLE MOVED, OIL WEAK
This morning the euro-dollar exchange rate was little moved at 1,213. At these levels, the European currency closed April with a drop of 1,5%.
Brent oil loses 0,7% to 74,1 dollars. Other crude prices are helping to boost exploration in the United States: rigs operating climbed 825 (+5) last week, the most since 2015.
Among today's macro data, German inflation stands out, expected to grow by 1,5%.
ARM OF IRON ON TRUMP'S DUTIES, PMI DATA COMING
Tension returns on the tariff front. Tomorrow the US duties on steel (25%) and aluminum (10%) introduced in March but suspended until the beginning of May could come into force against the EU. In a three-party call Angela Merkel, Emmanuel Macron and Theresa May agreed that if the measure is confirmed. Both the EU and Great Britain will react “within the framework of the multilateral rules on trade.
In Europe, the spotlight is also on the new, perhaps decisive, Brexit negotiation: on Friday, London and Brussels decided to entrust the issues to a working group chaired by Mario Draghi and the governor of the Bank of England Mark Carney. Meanwhile, there are confirmations of the slowdown in growth in the Old Continent. The United Kingdom stopped in the last quarter at +0,1%, France did slightly better (+0,2). Spain is still brilliant (+0,7%). The PMI data on the trend of industry in the Eurozone will arrive this week to give a more precise picture of the situation.
THE FED MEETING HAS BEEN STARTED, THE BONDS AUCTIONS COMING SOON
US monetary policy will be in focus this week. The meeting of the Federal Reserve bankers will close on Wednesday evening. A rate hike is not expected, nor is a press conference from President Jerome Powell expected. But from the final statement it could be understood whether the central bank intends to make two or three increases for the current year after the robust rise in yields on two-year T-bonds (to 2,5% from 1,88% at the beginning of the year) and ten-year (rising to 3,05%).
The data on inflation, out today, and on the labor market (198 new jobs expected, rate down to 4% from 4,1%) will help complete (and complicate) the game. In between will be US Treasury auctions. The outlook for Washington's coffers looks positive given the robust growth of Japanese investors' buying on the market after rising yields.
SMALL CAPS COUPONS TODAY. EIGHT BIG OVER 5%
The collection of spring coupons is completed today in Piazza Affari. There will be no blue chips this time but only minor titles. The list includes: Banca Profilo (0,005 euro) ordinary Fope (0,125 euro), Mutuionline Group 0,30 euro, Maire Tecnimont (0,128 euro), Nice (0,10 euro), Saes Getters (0,70 euro) and Servizi Italy (0,17 euros).
According to an initial report of the dividend campaign it can be said that the sum that companies listed on Piazza Affari will pay to their shareholders during 2018 will account for around 3,2% of the value of the main index of the Milan Stock Exchange. Eight of the 40 blue chips that make up the FtseMib index provide for a dividend with a gross yield greater than 5%. In particular: Azimut, UnipolSai, IntesaSanpaolo, Banca Mediolanum, Snam, Poste Italiane, Eni, Generali.
The calendar foresees today the meeting of Salini Impregilo's financial statements. Fiera Milano returns to the Star index.
THE TELECOM ASSEMBLY IN THE SPOTLIGHT
Saipem (Thursday) stands out among the meetings of the week. However, the key event of the week will be the Telecom Italia meeting on May 4, which could signal the victory of Elliott and his allies over Vivendi.
The Ferrari Board of Directors is also on the calendar.
TOMORROW THE APPLE ACCOUNTS: 210 BILLION BUY BACKS EXPECTED
On Wall Street, the most awaited quarterly will be that of Apple, after the rumors about the slowdown in sales of the iPhone X, and of Testa, the company of the always pyrotechnic Elon Musk who, regardless of the concerns of the operators for the delays in the production of the model S , has on sale caps and even a flamethrower (cost 500 dollars) with the effigy of the cyber dragon. He sold 20 in one day.
As for Apple, the feared disappointments in smartphone sales will probably be offset by new measures in favor of shareholders: according to forecasts, Apple could raise the amount allocated to the buyback to 210 billion dollars plus another 52 billion in dividends.
