The Fed is divided on the timing of the rate hike. The minutes of the last meeting of the central bank reveal the perplexities of some members of the FOMC on the postponement of new hikes, justified by the trend of the labor market and the recovery of inflation. But in the end Janet Yellen's concerns about the "appreciable" risks that the US economy runs in the event of a further deterioration of the international economy prevailed. For some governors, "raising rates as early as April could signal a sense of urgency that we don't believe is appropriate." In the end, the decision not to touch the cost of money passed with only one vote against.
Wall Street's changes after the publication were modest: there was a unanimous opinion among operators that the central bank will not move in its meeting on April 27th. Furthermore, many are betting that there will be no new rate hikes this year. At the end of the session, the Dow Jones index advanced by 0,64%, the S&P 500 by about 1%, Nasdaq +1,59%. The dollar, which rose during the session to over 1,14 against the euro, traded at 1,1397.
OIL FLYS +5,2%, ENI PLACES ONLY 400 MILLION BONDS
However, the data on the consistency of US crude oil inventories moved the markets, which fell last week by 4,9 million barrels, displacing analysts who on average estimated an increase in inventories of 3,2 million barrels. Oil reacted with a sharp rise in prices: Brent rose by 5,2% above 40 dollars a barrel, Wti above 38 dollars (+5,2%).
Investors are once again hoping for an agreement to freeze production of crude between producers. These hopes are fueled by the representative of Kuwait Nawal Al-Fuzaia, according to whom "there are positive indications for an agreement" in the meeting scheduled for April 17 in Doha (Qatar). The rise in oil favored the recovery of Eni +1% which placed a non-dilutive 2022 equity-linked bond for 400 million euros with institutional investors, 100 million less than announced. Tenaris +1,7% and Saipem +1,9%.
MILAN GOOD +0,7%. THE WEAK DOLLAR HABS THE REBOUND IN TOKYO
The slowdown in the dollar after the publication of the minutes unleashed a new wave of purchases on the yen, which also rose on the euro and the Swiss franc. Thus the initial gains of the Nikkei +0,25% one hour after the close almost evaporated. Almost unchanged Hong Kong -0,01%, in the red Shanghai -0,7%. During the day, the Chinese central bank will update the data on the amount of foreign exchange reserves. The recovery of crude oil has allowed stock exchanges to recover in Europe. In Milan, the FtseMib index rose by 0,7% to 17.240 after reaching a maximum of 17.391 and a minimum of 17.035 points. The London Stock Exchange gained 1,1%, Paris +0,8%, Frankfurt +0,6%. A slightly higher opening is expected for the lists of the Old Continent. The minutes of the last ECB meeting will be distributed today.
PFIZER STOP EXCITES EUROPEAN PHARMA
The best sector of the Eurostoxx was the Pharmaceuticals (+2,3%) supported by the news that the merger between the American Pfizer and the Irish Allergan has failed. A 160 billion dollar operation vanishes, but at the same time the games are reopened for new possible aggregations between other subjects. France's Sanofi gained 3,4%. Astra Zeneca (+4,5%), Glaxo (+3%), Merck (+2,4%) and Novartis (+2,3%) also rose. In Milan, where large pharmaceutical groups are not listed, Recordati rose by 1,1%.
BTP ITALIA: ONLY 4,3 BILLION FROM RETAIL (5,4 BILLION IN 2015)
Btp slightly down in the wake of the Bund, which records a greater decline with consequent narrowing of the spread to 116 points. Germany yesterday placed 3,235 billion of two-year bonds at an average rate decreasing to -0,48%. Orders of the Btp Italia 2024 by retail investors reached a total of 4,232 billion. Yesterday, the last day available to savers for subscription, 503 billion were collected. Tomorrow will be the turn of institutional investors. The placement recorded a slower trend than that of the issue launched last year, when the threshold of 3 billion was reached and exceeded on the first day of the offer and retail contributed 5,4 billion out of the total 9,4 billion issued .
RENZI PRESENTS ENEL BROADBAND AT PALAZZO CHIGI
It will be an electric day. Palazzo Chigi convened a press conference this morning in which Matteo Renzi and the CEO of Enel (+0,4%) Francesco Starace will participate, to present the broadband development plan of the public group which, thanks to the commercial agreement with Vodafone and Wind, could acquire 30% of Metroweb. Exane Bnp Paribas raised the target price of the electricity group from 3,6 to 3,7 euros, however confirming the underperform recommendation.
Telecom Italia +0,17%: it could find itself at a crossroads: go ahead but in cohabitation with Enel, renouncing the objective of an absolute majority in Metroweb, or take on an open challenge with Enel which, with the replacement of 32 million of meters will build the infrastructure, by passing the fiber through its electricity grid, for other authorized operators who will pay it a "rent". It is the first challenge for the new CEO Flavio Cattaneo, who today, together with the president Giuseppe Recchi, will meet the first line of managers.
Meanwhile, pending the official announcement of the agreement with Vivendi, Mediaset's financial statements show that Premium closed 2015 with losses of 83,8 million on net revenues of approximately 560 million (641 million total revenues also including advertising). The total costs for the first year of Premium in the 'Champions League' version exceed 755 million, bringing the operating result to a negative 115 million euro. Pay TV subscribers rose to 2,010 million at the end of December from 1,7 million at the beginning of July with an average monthly expenditure per customer which in December, according to some reconstructions, was 26 euros.
A2A LEADS THE MARCH OF UTILITIES
It was A2A's day (+4,3%), at its highest since January. The company yesterday announced the results for 2015, the objectives of the new industrial plan and an enhancement of the buyback after the purchase of treasury shares for 1,9% which will be added to a similar quantity already in the portfolio. The group announced the return in 2015 to a net profit of 73 million euros, despite the write-downs of assets for over 200 million, also following the elimination of the Robin Hood tax. The proposed coupon for 2015 rose by 13% to 0,041 euro per share, the same amount confirmed for 2016 as well. The company has updated its business plan to 2020.
Also highlighted among the utilities is Iren (+1,16%). Yesterday Mediobanca announced that it had included the utility stock in the Long Recommended Portfolio together with Anima and Ei Towers. Cerved, Poste Italiane and Saras have made room. Positive ideas for Snam (+2,13%) and Terna (+1,87%). The exception is Hera (-3,5%), after Citigroup lowered its recommendation to sell from neutral with the target price going from 2,2 euro to 2.
THE BANKS PLAN AWAKENS UNICREDIT. BUT POPULAR PEOPLE SUFFER
The plan developed by the government for the capital increases of the banks made it possible to curb the collapse of the sector. The main role will be played by the Cassa Depositi e Prestiti which will have to lead the construction of a Guarantee Fund for the recapitalization of the Italian banking system. The Cassa has also started a dialogue on the subject with the ECB, for the purchase of non-performing loans from banks at prices closer to the carrying values of the institutions, compared to what specialized operators offer on the market. The first objective is to create an instrument capable of supporting the recapitalizations of the two Veneto banks (Popolare di Vicenza and Veneto Banca), but also of other smaller institutions requested by the Bank of Italy to strengthen their capital.
Unicredit advances (+1,7%), but in sharp slowdown compared to the gains of the morning (up to +6%). The bank extended the guarantee on the 1,75 billion euro capital increase of Popolare di Vicenza from 30 April until the second half of May. The start of the operation is expected on 18 April, ie immediately after the green light from Consob for the information prospectus.
Positive day, with a final slowdown, for most of the credit companies: Intesa +1,1%. The one billion euro capital increase operation of Veneto Banca can be carried out within the envisaged terms, said Gian Mario Gros-Pietro. Intesa Sanpaolo is guarantor of the recapitalization operation of the Venetian institute. Monte Paschi +2,7% and Mediobanca +0,9%. On the contrary, the landslide of the Popolari did not stop: Banca Pop.Milano lost 1,3%, Banco Popolare -3,3%, Ubi -1,2%. During the day, doubts arose about the practicability of government intervention.
GENERALI AVOID A DIFFICULT IN MALAYSIA
Insurers should also be involved in the government project starting with Generali which closed just above parity. The company has taken a position on the claim for compensation received from BTG. The Brazilian financial company that had acquired Banca della Svizzera Italia (later sold to EFG International) announced yesterday evening that it had sent a letter in which it claims to have unspecified rights of recourse to Generali linked to a possible involvement of the bank in the sovereign wealth fund scandal of investment of Malaysia. It seems that some of the money diverted from the fund, hundreds of millions of dollars, also ended up in BSI accounts in Singapore.
The company has made it known that the contract limits the possibility for BTG to obtain reimbursement for any damages suffered.
BRAZIL BRAKES FCA. CUTS ALSO IN THE USA
Driven by the bad data on car sales in Brazil, FCA lost 1,3%. In annual terms, last month's decrease was 23,7% in terms of production and 23,6% in terms of registrations. The group announced the shedding of about 1.300 workers at its Sterling Heights, Michigan plant. Cnh Industrial -2,5%, but Exor closed positive (+2,4%).
