Beijing wants to respond to Trump's tariffs by lowering import tariffs. The strategy, confirmed yesterday by the Finance Ministry, aims to reawaken domestic demand and mitigate the effects of the trade dispute with the United States.
The move is destined to favor the other Asian economies, starting with Japan, already stimulated by the good health of the USA, the area's main customer. In this context, the effects of the increases in tariffs by Trump are less frightening, in an excellent mood for the performance of Wall Street, pushed upwards by the confirmation that the economic situation is booming: the weekly requests for unemployment benefits have dropped to lowest since 1969.
The President, rightly convinced that the economy is the extra weapon to win the November elections despite the grip on Russiagate is tightening, dedicates his daily tweet to the Opec countries. “Without our protection – he writes – their safety would be numbered. But they continue to ask for higher prices for their oil”. In short, Taurus has a guardian angel in the President who is not always listened to: operators are preparing to record the next rate increase by the Fed despite the president's warnings. Only the interest rate curve, increasingly narrow, indicates that the market has doubts about the stability of the boom.
TOKYO AT THE HIGHEST FOR EIGHT MONTHS
The Stock Exchanges, for now, can toast to the new Wall Street records.
The recovery of Chinese stock exchanges continues. Hong Kong is up 1%, slightly better than the CSI 300 index of the Shanghai and Shenzhen stock exchanges which gained 2,7% in the last week. The dollar-yuan exchange rate remained unchanged at around 6,84.
Tokyo gains 0,9%, reaching an eight-month high, while the yen weakens against the dollar to 112,7, the lowest in the last two months.
Day of records for Wall Street: Dow Jones (+0,95%) and S&P 500 (-0,78%) reach new all-time records. The Nasdaq also rose (+0,98%). Tump celebrated with a telegraph: "Congratulations America."
All sector indices are positive, with the exception of energy.
NIKE BOOM: SALES +61% THANKS TO THE ANTI-TRUMP CHAMPION
Nike shines (+1,1%): sales in the USA rose by 61% after the engagement as testimonial of Colin Kaepernick, the football player who is a symbol of the protest against racism.
Oil prices contrasted, in any case below the threshold of 80 dollars appreciated by Saudi Arabia. Brent is trading at 78,72 dollars a barrel.
Weak yesterday Saipem (-1,75%). The company, which reserved the right to appeal against the sentence, was convicted together with its ex-CEO Pietro Franco Tali for alleged bribes paid for contracts in Algeria. Kepler Cheuvreux cut the target price to 4,4 from 4,5 euros.
EUROPEAN STOCK MARKS RISE, BUT THE SPREAD NEVER FALLS DOWN
Italy continues to move the picture of the European markets.
The Italy-Germany spread, as well as the Italy-Spain differential, stopped falling for a few days, also due to the declarations received from some members of the majority. In the afternoon, Economy Minister Giovanni Tria confirmed his intention to sterilize the safeguard clauses that would trigger the VAT increase starting from 2019.
This morning, with the definitive data on industrial production released by Istat, the technicians of the Ministry of the Economy will have everything necessary for their calculations on the trajectory of the public finances: one should know if there is room for the citizen's income, for the flat tax and for the abolition of the Fornero law. Meanwhile: the OECD has cut the estimate on the growth of the Italian GDP in 0,2 by 2018 percentage points, bringing it to 1,2% from 1,4%, while the forecast for 1,1 remains confirmed at 2019%.
Positive yesterday European equities gradually gained traction, driven by Wall Street gains. Even this morning, according to futures, an uphill start is expected. The improvement in the economic situation was transmitted to the euro which was able to gradually hoist itself above 1.17 against the dollar, together with an aggressive pound, which looked more to the trend in UK consumption well above expectations than to the conflicting statements coming out of the Salzburg Summit on Brexit.
LONDON, DURING THE WEEKEND THE FATE OF SKY IS DECIDED
Stock exchanges in Frankfurt (+0,9%), Madrid (+1%) and Paris (+1,1%). London, held back by the discussions on Brexit, does slightly worse (+0,49%). Over the weekend, the fate of Sky, disputed between Comcast and the Murdoch group, will be decided. This was decided by the British Supervisory Authority which established the modalities of the race which foresees only three possible rounds. The match will end on Sunday evening. For now, the highest bid (£26 billion) is from Comcast.
Milan also participated in the rally +0,51% to 21.388 points.
The ten-year BTP yield rose to 2,893% from 2,859% at the end of yesterday's session after a low of 2,803% in the middle of the session. The gap with the Bunds rose to 242 points from 237 on the eve, after a minimum of 232.
TREASURY AUCTIONS UNDERWAY: CTZ 1,75 BILLION
Meanwhile, it's auction time again. The Treasury will offer between 2 and 2,75 billion between Ctz and Btpei on Tuesday. In detail, 1,25-1,75 billion euros of the Ctz in March 2020 and between 750 million and 1 billion euros of the Btpei in September 2032 will be offered.
Spain placed 1,056 billion euros of Bonos maturing in 2021, 880 billion in 2022, 740 billion in 2025 and 1,806 billion in 2028. Paris +0,9%. France also completed the auction of government bonds by placing 3,221 billion euros of OAT maturing in 2021, 3,197 billion in 2024, 1,076 billion in May 2026.
MALACANZA WINS THE DUEL IN CARIGE
Banks turned negative, with the Italian index at -0,11% against the +1,3% of the European one. Unicredit performed well (+1,05%), the favorite of Oddo BHF analysts. On the contrary, Ubi Banca (-2,44%) and Mediobanca (-1,44%) decreased on the day of the board meeting.
Banca Carige marks -4,55%, on the day in which the shareholders' meeting appointed the new board, with the Malacalza list which obtained the majority (7 councilors out of 11). Pietro Modiano was appointed president.
STM AT THE TOP, ATLANTIA TOWARDS SPAIN
Stm rebounds after the losses of the days and is the best of the list with +3,5%. Credit Suisse confirmed the Outperform recommendation and the target of 27 euros.
Atlantia rises by 1,43%. Sources report that the company, together with Acs and Hochtief, will create the vehicle that will control the Spanish Abertis next week, taking another step towards completing the transaction. Conte reiterated that the Autostrade per l'Italia concessionaire will not participate in the reconstruction work on the Morandi bridge, collapsed in Genoa last month, but only to its financing.
FCA SALE, 18% OF THE JUVENTUS TITLES PASS THE HAND
Fiat Chrysler rose (+1,5%) after press reports concluded the deal with Kkr for the sale of Magneti Marelli. According to some analysts, the sale has negative aspects, because FCA would deprive itself of the most technological company of the group.
Setback at the end of a breathtaking session for Juventus (-5,4%), despite winning their debut in the Champions League, after reaching a peak of 1,8 euros. More than 182 million shares were traded on the market, i.e. 18% of the share capital of the company chaired by Andrea Agnelli, more than double the previous record which dated back to 2012.
TELECOM TO NEXTEL, COMES OUT OF PERSIDERA
Inwit +2,3%. Rai Way (-1%) is studying a new offer on Persidera, controlled by Telecom Italia (+0,2%), which in turn is evaluating an offer for the South American telecommunications operator Nextel.
Tecnogym did well (+2,08%) in the wake of the increase in the half-year profit of 99% to 377 million.
Ovs also rose (+5,23%): the half-year report recorded stable revenues and declining Ebitda.
New rebound by Astaldi (+6,66%), after the recent decreases on the alleged difficulties for the launch of the capital strengthening plan.
