Donald Trump never ceases to amaze. Yesterday, the president kicked out the White House communications chief, Anthony Scaramucci, after just ten days, who had presented himself by ousting the chief of staff Reince Priebus using language and tones worthy of the Sopranos. The confusion at the top of the US administration is one of the keys to the strength of the euro, which jumped this morning to 1,1824 against the dollar. Compared to last January, when the single currency was trading around 1,0340, the rise is now 15%.
Under the pressure of a turbulent currency situation, the Milan Stock Exchange archived a truly surprising month of July: +4,5%, against the decline in Frankfurt (-1,6%) which suffers from the effects of the rise of the single currency on export. In seven months, Piazza Affari rose by 11,8%: only Madrid did better (+12,5%), while the performances of Paris and Frankfurt were limited to +4,8% and +5,5% respectively.
In this more rosy (or less gray) setting, Pier Carlo Padoan is preparing today to receive a visit from Bruno Le Maire, the French minister who will present the Parisian counter-offer on the Stx construction sites in Rome today. In essence, Emmanuel Macron is aiming for a 50/50 agreement by proposing the extension of the agreement to Naval Group and Leonardo, laying the foundations for a European maritime defense pole. An agreement, on these bases, seems very difficult, because Italy cannot give up the majority lightly. But the important thing, for now, is to avoid breaking up. Meanwhile Fincantieri (+1,99%) has risen to 1 euro.
ASIA WITH THE PLUS SIGN, SAMSUNG SUPERSTAR
A long financial day opens with positive auspices and will close in the late evening with Apple's accounts. All Asian indexes rose, with the exception of India: the Asia Pacific index gained 0,5%. Tokyo +0,3%, Hong Kong +0,7%, Seoul +1%. The CSI 300 index of the Shanghai and Shenzen stock exchanges gains 0,6%. The Indian Stock Exchange is on parity, after the release of some indicators on manufacturing activity, unexpectedly very negative.
Thus the rally of the Korean economy continues, driven by the strong increase in the export of chips and memories. Samsung ended the quarter with record profits exceeding 11 billion won (8,35 billion euros) or 4 million euros per minute.
BRAKE US TECH, TESLA SWITCHES
Two-speed seat for US markets. The Dow Jones index, +0,28% driven by Boieng (+0,50%), set a new record at 21.891,12 points. S&P 500 (-0,07%) and Nasdaq (-0,42%) were down.
Stocks in the Tech sector fell, starting with Facebook (-1,86%) and Alphabet, the parent company of Google, which lost 1,34%. Apple, on the eve of the accounts, falls by 0,51%.
Sudden slowdown by Tesla (-3,46%): Alon Musk has put his hands forward, warning that in the coming months, deliveries of the Model 3, the mass electric car, will proceed in fits and starts while waiting for the production plants to break in. The car has already registered over one million bookings. Each reservation involves the payment of one thousand dollars refundable. The first 30 models have already been delivered to group employees: the price ranges from 35 dollars for the model with 350 km of autonomy to 44 dollars for the one with 500 km of autonomy. The maximum speed is 209 or 224 km/h depending on the model.
Discovery Communications fell 8.21% after offering $11,9 billion for Scripps Networks Interactive.
OIL ADVANCES, ENI AWARDED BY REPORTS
Closure recovering for oil: Wti at 50,2 dollars a barrel, Brent 52,70. The front of the countries that have entered into the agreement on the containment of hydrocarbon production announced over the weekend that it will meet in Abu Dhabi on 7 and 8 August to discuss, and possibly sanction, the adherents who are not respecting the commitment.
Among the oil companies, Chevron climbs (+1%) on the wave of good results. Eni shines (+0,83%) one of the engines of the increase in Piazza Affari after the good results of the second quarter. Jefferies confirmed the stock's buy recommendation and target price of €17 following Q2017 17 results. Analysts highlighted the stock's solid cash flow and still affordable valuation. Rating buy also by UBS (target price at 1,62 euros). Claudio Descalzi met the president of Libya and the number one of the public energy company Noc. The second phase of the development of Bahr Essalam was also discussed. Unchanged Saipem, Tenaris -XNUMX%.
EMPLOYMENT IS IMPROVING, PMI DATA TODAY
The flow of good news on the economic situation in the Eurozone continues: unemployment has fallen to its lowest level since 2009. Italian data is also improving (11,1%). Even the flash estimate on inflation for July (1,3% against 1,1%) goes in the direction desired by Mario Draghi. But the encouraging result of the key indicator for the ECB in terms of rates and tapering gave the euro wings. At 10 the PMI indices of the Eurozone will be published. An hour later it will be the turn of EU GDP for the second quarter.
Milan is confirmed as the most tonic list: the Ftse Mib index rose by 0,26% to 21.486 points. The other markets of the Old Continent are weaker. In red Paris (-0,73%), Frankfurt (-0,37%) and Madrid (-0,14%). Better London (+0,14%) thanks to mining stocks and the performance of HSBC (+2,66%). Europe's most important bank has launched its third buyback in a year.
Meanwhile, the cold war on Brexit continues. Teresa May's spokeswoman said the free movement of people between Britain and the European Union would end in March 2019. The opposite of what was guaranteed a week ago by British Finance Minister Philip Hammond, who had said that there would be no immediate change in immigration rules at the time of Brexit.
SPREAD AT 156 POINTS, BTP AT 2,093%
The Italian secondary closed the first session of the new week with a positive sign. The Italy/Germany spread on the ten-year stretch closes at 156 basis points, three tenths below Friday
evening. The 2,093-year BTP traded at 5%. The reopening reserved for specialist operators of Friday's auction on the new 10-year BTP, 1.453,5-year and CctEu has almost completely sold out. The total amount assigned is 1.762,5 million out of the total of 2022 million, the only security not fully subscribed is the five-year August 0,90 coupon 1,2%, reopened for 891 billion but requested for "only ” XNUMX million.
SPOTLIGHT ON TELECOM, ESSILOR TRIPS LUXOTTICA
In anticipation of today's meeting with the French Minister of Industry, Bruno Le Maire, other chapters of the Paris-Rome financial agenda are taking hold. In evidence Telecom Italia, supported by the positive numbers of the quarterly but also by the openness of the chairman Arnaud de Puyfontaine on a possible spin-off of the Network. Mediobanca Securities, which confirmed the outperform recommendation on the stock and the target price of 1,34 euro, stated that the accounts were strong, with the biggest surprise coming from the return of revenue growth from fixed network services (beyond expectations). “We think consensus estimates could go up,” the broker noted.
The transalpine liaison does not bode well for Leonardo del Vecchio: Luxottica dropped 3,32% in the wake of the fall in Paris of the promised bride Essilor, which on Friday cut its revenue targets due to the difficulties of the markets in China and Brazil . Volumes almost four times the monthly average.
Citigroup dedicates a positive report to the Italian banking system: the picture has improved, we read, thanks to lower systemic risk and progress in terms of asset and capital quality.
CARIGE GOES INTO ORBIT
In the sector Carige flies (+10,72%) after the announcement of the start of the asset transfer process concerning non-performing loans, the Npl management platform and the merchant book business. Volumes more than double the average for the last month. Intesa rises by 0,2% on the eve of the quarterly. Unicredit down by 0,6%. Positive closure for Banco Bpm (+0,3%), back Bper Banca (-1,1%).
In assets under management, Banca Generali (+1,8%) benefited from the target price increase (from 30,2 to 32,8 euro) by Banca Imi.
INDUSTRY GOOD, PIAGGIO SPEEDS UP
The drop in rates benefited the utility sector. Enel gained 0,2%. Terna +0,5%, Snam +0,8%, Atlantia +0,9%. A2A gains 1,4% after announcing the results for the first half: ebitda beyond expectations at 649 million.
Good increases among industrial stocks, starting with Prysmian which gains 1,4% after Morgan Stanley raised its target price to 29 euros. Stm +1,4%, Recordati +1,1%. Fly Piaggio (+8,8%) after the results.
TIME FOR TAKEOVER AT AIM. F2I BUY MC-LINK
In the Luxury sector Yoox (+3,06%) and Tod's (+1,3%) rise, Ferragamo falls (-0,3%) pending the accounts. Very good Geox (+3,84%).
Takeover bids for Aim. F2i and Marguerite yesterday reached an agreement for the purchase of 89,81% of the capital of Mc-link, a telecommunications company listed on the SME segment of Borsa Italiana. The tender offer on the free float will take place at a later stage at a price per share of 15,60 euros with a premium of approximately 5,5% compared to the closing values.
