The big sell-off in European government bonds seems over for now. On the contrary, the prices seem to entice the return of purchases from the USA and the East. Other signs suggest a growing end to the week after yesterday's session full of emotions: oil slows down, the euro returns to 1,1251, the outgoing quarterly reports promise satisfaction. The markets are thus confidently preparing for the most awaited appointment: the report on the US labor market. After last month's cold shower (only 126 new jobs) there is hope for a robust rebound.
The Tokyo Stock Exchange rose by about half a percentage point, as did the Asia Pacific area. Shanghai +0,9% trimmed gains after disappointing new export data. The Wall Street indexes are positive: Dow Jones +0,46%, S&P 500 +0,37% and Nasdaq +0,53%.
Big Alibaba leap (+7,6 to 80 dollars) after the accounts for the quarter closed with revenues equal to 2,81 billion dollars (+ 45%). The stock debuted in September at $68 and reached a peak of $120 in November. Its shareholder Yahoo +5,3% is also towing the Chinese e-commerce giant.
STERLING CELEBRATES TORIES' VICTORY
The British elections decreed an unexpected success for David Cameron: the Conservatives won 316 seats, a hair's breadth below the absolute majority. The markets have already taken note of this: the pound rose to 1,5473 against the dollar (+1,3%). Yesterday the London Stock Exchange, pending exit polls, closed down by half a point.
HAPPY END FOR EU STOCK EXCHANGES: MILAN +0,8%
A day of ups and downs with a positive ending for the European stock exchanges. In Milan, the FtseMib index rose by 0,8% after strong fluctuations. The market was negative for three quarters of the session, before rallying late on Wall Street's heels. Final in pink also for the stock exchanges of Frankfurt (+0,5%) and Madrid (+0,4%), while in Paris the index fell by 0,2%.
BTP TO THE RESCUE, BUT HOW MANY THRILLS
The bond market held the strongest emotions, experiencing the most spectacular day in traders' memory. After an uncertain opening, sales on the German Bund unleashed causing a surge in yields: 0,78% on the 0,05-year period, against a low of 2% less than a month ago. At the same time, the BTP climbed back over the 1,766% barrier in the middle of the session, with immediate repercussions on the prices of Piazza Affari. Just when the worst was feared, however, the longed-for "strong hands" made their appearance, encouraged by the fact that no new sales currents were arriving from the USA. And so the yield on the Italian 117-year bond fell to XNUMX%, while the spread narrowed to XNUMX points.
ATHENS SUMMARY THE STATE. SCHAEUBLE PESSIMIST
In the meantime, the situation in Greece is increasingly tense. Pleasant declarations are multiplying in anticipation of next week's Eurogroup, but in fact Athens responds spade to requests to present a sustainable plan: pensions are not affected and thousands of civil servants already cut by the Samaras government were rehired yesterday.
“My expectations for Greece are not very high,” German Finance Minister Wolfgang Schaeuble reiterated yesterday. Meanwhile Andreas Dombret, a member of the Bundesbank Board, stressed in an interview with the German weekly Wirtschaftwoche that "German banks have an exposure to Greece of just 2,4 billion euro".
TELECOM, PROFITS CONTAINED BY BONDS BUYBACK
The quarterly reports are the great protagonists of Piazza Affari. This morning he faces the conference call test with Telecom Italia analysts, +1,56% yesterday before the start of the Board meeting. The quarter closed with revenues of 5,1 billion (-2,6%), while net profit fell to 80 million due to the impact of the repurchase of own bonds, without which it would have exceeded 300 million against the 222 million of last year. Investments are around 1 billion.
In 2015, the group expects "a progressive improvement in operating performance both on the domestic market and in Brazil". Telecom Italia's adjusted net financial debt at March 31, 2015 amounted to 27,4 billion euros, a decrease of 99 million euros compared to March 31, 2014, but an increase of 779 million euros compared to December 31 2014.
During the board meeting, the developments of the Metroweb dossier were examined: the game, at least for now, seems closed. Instead, the fiber alliance with Fastweb takes off.
PRYSMIAN IN THE FLIGHT: EBITDA BEYOND EXPECTATIONS. GOOD FCA
Great performance, after the quarterly, by Prysmian: +6,7% to 19,48 euros in the best session since the beginning of the year after announcing strong growth in first quarter results, better than expected. The leading company in the production of cables recorded an adjusted EBITDA growth of 53,4%, to 120 million, better than the consensus which indicated 106 million. Net income stood at 42 million. Net financial debt at the end of March amounted to 1,040 billion, compared to 802 million at the end of 2014. Thanks to the rally, Prysmian shares have risen by 27% since the beginning of the year.
Among the industrialists, Fiat Chrysler also did well (+2,1%) despite the data that signal the drastic contraction of the car market in Brazil (sales -25% in April).
FINMECCANICA-FINCANTIERI: MAXIMUM ORDERS FROM THE NAVY
Finmeccanica +1,5% and Fincantieri +1%, both rewarded by one Navy saleswoman as part of the fleet renewal plan which plans include the construction of six patrol vessels with an additional four as an option and a logistic support unit. The value of the contracts is approximately 3,5 billion euro, of which Fincantieri's share amounts to 2,3 billion euro, while that of Finmeccanica is 1,2 billion.
AZIMUT SUPERSTAR, GENERALS WELL
The golden quarter of asset management was confirmed by the accounts of Azimuth, up 3,8%. The group announced that it closed the first three months of 2015 with a net profit of 128 million (+250%) and performance commissions of 97 million from 17,6 million in the same period of 2014 (+108%). The company reports it's the best quarter in its history. For the whole of 2015, a net profit of 200-300 million is estimated in a context of "normal" markets.
In April, net inflows amounted to 643 million euros, a figure that exceeds one billion euros thanks to the consolidation of the assets of Azimut Bosphorus in Turkey, following the authorization of the local competent authority. With April inflows, group subscriptions have reached €2,3 billion year-to-date.
The insurance sector also stood out, driven by the brilliant performance of the Allianz accounts. In Milan Generali +2,8%.
GOOD BANKS, MEDIOBANCA CONFERNCE TODAY
A positive day also for the banks, awaiting the conference call on the Mediobanca accounts (-0,23%), the only one to close lower. The Popular ones are flying: Ubi +5,01%, Bper +5,27%, Banco Popolare +2,28%, Bpm +1,78%. Popolare di Sondrio is highlighted (+6,86%): Equita Sim has started hedging the stock with a buy rating and a target price of 5,1 euro. The Bigs are also doing well: Intesa +2,13%, Unicredit +1,50%.
OIL STOCKS DOWN. ENEL ALSO DOWN
The drop in oil was felt by Eni (-1,5%), Tenaris (-3,5%) and Saipem (-2,3%). Capital of Saras (-2,4%). Among the utilities, Enel suffers the greatest decline with a drop of 1,4%. Terna -0,2%, Snam -0,1%. Brilliant A2A (+3,1%).
