"He was a boring candidate, today he holds his own against Roosevelt." so theEconomist comments on the first hundred days of President Joe Biden, who set a frantic pace on the US recovery. Yesterday, with the presentation of the American Families Plan, the amount allocated to programs to relaunch the economy rose to 6 trillion dollars, to be financed only in part with taxes. The consequences of the US rush to full throttle can be seen: the stars and stripes GDP rose by 6,4% in the first quarter, more than China. Meanwhile, private consumption shot up by 10,7%, never so good since 1960, to the delight of Amazon which increased its sales in the quarter by 44% compared to a year ago for a total of 108,5 billion (more than 8 billion profits).
Such grace, for a Stock Exchange that has reached new highs, triggers a precise reaction: lighten positions and take profits on equities, bet a chip (or something more) on bonds under tension in the face of the obvious increase in inflation . Temporary, the Fed emphasizes, but sensitive.
THE BUND RISES TO -0,19%, RECORD APRIL FOR THE STOCK EXCHANGES
The 1,65-year US Treasury note traded at a yield of XNUMX%, little moved after a day of strong selling.
Yesterday the reaction on the Bund was more sensitive, whose yield rose to -0,19%, a level not seen since March of last year. For now, there's nothing to worry about. On the contrary. The rate hike is oxygen for the banks, which have been doing well on the stock market since the movement began: the Stoxx index marks a 27% gain in the last three months.
The global MSCI index reports a 5,1% increase in stock prices in April
CHINA HOLDS BACK: NEW FINES FOR INTERNET BIG
On the other hand, almost all Asian stock exchanges are down this morning. Among the worst is that of Hong Kong: the Hang Seng, the reference index, loses 1,5%, a negative change that brings the weekly balance to -1%.
The big names in the Chinese Internet economy are on the decline, due to Reuters rumors regarding a 10 billion yuan ($1,6 billion) fine that Beijing's competition watchdog is about to send to Tencent. Yesterday, it reads on Financial Times, the central bank has called on online payment companies to impose stricter rules on lending.
The CSI 300 of the Shanghai and Shenzen lists lost 0,3%, but the week closed with an increase of 0,5%. The PMI indices on the expectations of purchasing managers of Chinese manufacturing companies show that Chinese industry is in full expansion: the index elaborated by the Beijing statistics office beat expectations, the one published by Caixin is slightly below forecasts, but well above the expansion threshold.
TOKYO ALSO MARKS THE PACE (-0,5%)
Tokyo's Nikkei is down 0,5%, -2% on the week. Japan is busy trying to save the Summer Olympics with a strict lockdown.
The Indian Stock Exchange, down 0,7% at the start of the session, at these levels, closed the week with an increase of 4,5%.
CHINA WANTS STAKE IN ARAMCO
Oil prices also closed the week close to their highs: Brent at 68,30, Wti above 64 dollars.
Leading Chinese investors, he writes Reuters, are conducting talks to buy a stake in Saudi Aramco, the state oil company of Saudi Arabia.
In the US, Wall Street's S&P 500 index futures are down 0,3%.
Amazon, in commenting on the record results, predicted that the reopening of businesses shouldn't slow down the growth of overall turnover, because it's not only e-commerce that is buoyant, but also cloud businesses and the advertising sales: the second quarter is estimated between 110 and 116 billion dollars.
Twitter's advertising sales are also doing well, which again tonight announced that it closed the first quarter of 2021 with a 28% increase in revenues, in line with analysts' forecasts, but much less than what they recorded in the same period of time competitors such as Facebook (+48%).
TODAY THE NEXT GENERATION WILL BE DELIVERED IN BRUSSELS
The Council of Ministers has given the definitive go-ahead for the National Recovery and Resilience Plan and the additional 30,6 billion fund. Today the text will have to be delivered to the European Commission. Undersecretary for European Affairs Vincenzo Amendola said 13% of the funds will arrive before the summer. The advance for Italy is around 25 billion.
THE BUNDS UNDER PRESSURE, WEIDMANN ON THE ATTACK AGAINST LAGARDE
"Central bankers should not try to redistribute wealth through monetary policy, as they lack the tools and legitimacy to do so," said Jens Weidmann, president of the Bundesbank. And the return to the scene of Mario Draghi's main antagonist at the ECB coincided not by chance with the increase in the race for yields on the US bond market, which then involved Europe, putting the German Bund under pressure.
Piazza Affari loses 0,74 and falls back to 24.278 with a final dive: at 15 pm the Ftse Mib index scored 39 points.
CDP AND INTESA IN EURONEXT. THE DATA CENTER WILL BE ITALIAN
On the day in which Euronext (+1,36% in Paris) completed the acquisition of Borsa Italiana from the London Stock Exchange for a value of 4.444 million euros, Cdp Equity and Intesa Sanpaolo become part of the "reference shareholders" of the group with the signing of a private placement of 579 million euro. Euronext's main data center will be based in Ponte San Pietro, just outside Bergamo, on the campus of Aruba, a leading Italian company in the sector.
Frankfurt is down (-0,83%), alarmed by a worse-than-expected employment figure in April.
Weak Amsterdam (-0,19%). Paris and London are flat. Madrid +0,25%.
THE SPREAD RISES TO 111, ALSO UP THE YIELDS AT AUCTION
Eurozone government bond yields remain on the rise, with bond sales boosted by good economic indicators emerging from macro data, especially in the US, and from corporate earnings reports around the world.
The Btp/Bund spread, after traveling around 107 points, closed in a clear widening at almost 111 basis points. The BTP rate closes at +0,8%.
Yields also rose on the primary. In the morning, the Treasury auctioned the fifth tranche of the 5-year BTP, maturing on 01/04/2026, for the maximum amount offered, equal to 2,75 billion with a gross yield of 0,17%, up by 12 basis points. In the auction of 10-year BTPs, maturing on 01/08/2031, securities were assigned for the maximum amount offered, equal to 2,5 billion, with a gross yield of 0,88%, up 15 basis points. In addition, the Treasury has assigned a second 10-year BTP, maturing on 01/04/2031, for the maximum amount offered, equal to 2 billion, with a gross yield of 0,83 percent. Finally, the Treasury fully assigned the maximum amount offered for 6-year CCTeus, equal to 1,25 billion, with a gross yield of -0,06%, up by two points.
THE RACE OF MEDIASET CONTINUES: THE COUPON ARRIVES
Third consecutive session on the upside on sustained trading for Mediaset stock: +7,18% yesterday. A lot of animation rings in confirmation of the imminent peace on the Vivendi front which, among other things, should provide for the distribution of a dividend of 0,3 euros per share. Vivendi will undertake to sell the 19,2% stake in the group currently held through the Simon fiduciaria within five years. The European project that will be carried out by the new Dutch headquarters is back in the news. Equita Sim confirmed its hold rating.
The session is still positive for the banks: Intesa +0,91%; Unicredit +0,86%; Mediobanca +0,28%.
AT THE TOP A2A. A 2021 IN PINK FOR STM
Thursday's pink jersey was A2a (+1,63%), closely followed by Stm (+1,17%), in the wake of the first quarter results beyond expectations. Even the indications for the second quarter of the year are better than analysts' estimates.
TOD'S, DELLA VALLE OPENS AT THE LVMH MERGER
Back on track Tod's (+3%) once again crosses the 40 euro threshold. It is among the best today. Diego Della Valle said Tod's and LVMH were considering whether they could "do something together" after the French luxury giant increased its stake to 10%.
ATLANTA +1,5%. CDP OFFER READY, LEADER IN OPEN FIBER
The countdown has begun for the sale of Aspi. The consortium formed by CDP, Macquarie and Blackstone sent Atlantia (+1,5%) the offer with "some refinements".
Meanwhile, Cassa Depositi e Prestiti is preparing to become the first shareholder of Open Fiber, the fiber network company born in December 2016 to bring a fast Internet connection throughout Italy. After negotiations that have been going on for months, the institute led by Fabrizio Palermo has squared the circle between Enel, which is about to sell its 50%, and the Australian fund Macquarie which is instead about to acquire 40 % of infrastructure. Board of Directors of Cassa Depositi e Prestiti has given the green light to CDP Equity (CDPE) to submit an offer to Enel for the acquisition of a 10% stake in Open Fiber (OF). Once the transaction is finalised, CDPE will be able to acquire the majority of the company's share capital.
AMPLIPHONE UNDER FIRE. DOWN SAIPEM AND TENARIS
There were some heavy slides, despite positive accounts: Amplifon leaves 3,5% on the ground, despite having closed the first quarter with profits almost fivefold compared to a year ago.
The landslide of Saipem continues (-5%), paralyzed in Mozambique by geopolitical problems.
Tenaris also takes the downward path (-6,7%). The quarterly results released tonight are slightly below expectations in terms of profitability but are much better in terms of profit.
STELLANTIS (-3,8%) FIRST IN EUROPE. ALSO SUFFERS CNH
Stellantis -3,81%. In the first three months of 2021 Stellantis reaches the top of the sales ranking in Europe. Combining the data for cars and commercial vehicles, the born group achieved an overall market share of 23,6% and registered more than 854 vehicles.
Cnh Industrial -3%. The end of the negotiations with Faw on Iveco does not exclude future talks for a possible partnership. This is what was explained by the Chief operating officer of the Truck division, Luca Sra. Reuters reports that CNH will include the Iveco-branded defense vehicle business as part of the spin-off entity (the so-called “On-Highway” division), while remaining a separate company.
Pirelli also down: -1,9%.
THE FURNITURE FAIR IS HAPPEN, FIERA MILANO STARTS AGAIN
Fly Fiera Milano (+3,6%) after the confirmation that in September the furniture fair will be held albeit in a smaller version.
Well Piaggio: +2,71% after the accounts.
CHARGING BATTERIES: SERIOUS +60% IN APRIL
Seri's performance (+5) is in the Guinness Book of Records. Since April 60, the share has risen by 1%: the company that operates along the entire supply chain of electric accumulators has started the production of lithium batteries in the Teverola 50 plant with expectations of 2021% saturation in XNUMX of the production capacity of the plant.
