It's official: on Monday the Chinese real estate giant Evergrande, burdened by 305 billion dollar debts, will not honor the interest on some bonds. Meanwhile, the million customers who advanced the money to buy a house remain in limbo. And, due to lack of capital, 1.300 complexes distributed in 280 cities remain unfinished, many properties that could fill 75% of Manhattan. But the big Western managers are also licking their wounds, who just a few months ago launched plenty of equity and bond funds to ride the Chinese recovery, which soon came to a halt. Reuters draws up an initial list of victims: Amundi (93 million dollars), Ubs (83) and to follow BlackRock, Fidelity and so on. At their expense (indeed at their subscribers), the managers discover that even in China the saying "too big to fail" does not apply. Or that, when you go hunting for yields above 10%, you run into bad adventures even in apparently calm markets.
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For now, there are no new crunches in global finance after yet another Chinese disaster (tech has left more than a trillion dollars on the ground this year). The markets are awaiting the decisions of the Fed: the dollar is rising, bond yields are moving up to the detriment of share prices. But the increase in consumption will limit the damage.
Asian stock exchanges also closed the week with a recovery, thus limiting the damage. Tokyo's Nikkei climbs 0,5%, +0,3% on the week. Even as China Evergrande drops another 12%, Hong Kong's Hang Seng gains 0,4%, but ends the week down 5,5%. CSI 300 of Shanghai and Shenzen lists +0,3%, -3,8% for the week.
BOOM DEBUT IN SEOUL OF THE HYUNDAY SHIPYARDS
Seoul's Kospi +0,3% on the day of Hyundai Heavy's pyrotechnic debut: the stock more than doubled its value, to 117 won, after a billion-dollar IPO: the shipbuilding company sold the shares to the maximum of the initial range. The Kospi index closes the week on parity.
AUSTRALIA -0,8%. INDIA IS THE BEST STOCK EXCHANGE
Australia (-0,8%) is at the center of attention and criticism after the military agreement with the US and UK in an anti-Chinese function that Beijing defines as "a cold war gesture, out of time". The Sydney Stock Exchange closed the week down 0,2%.
Mumbai's BSE Sensex gains 0,6% at the start of the session. The weekly balance is positive: +2%.
ON WALL STREET ONLY FEDERER'S SHOES SHINE
The US markets were weak yesterday: Dow Jones -0,18%, S&P -0,13%. Nasdaq slightly up: +0,15%.
Of note is the brilliant debut of On: +47% on the occasion of the IPO. The sports shoe maker owned by Roger Federer is valued at $11 billion.
Wall Street futures are flat on the eve of a day probably conditioned by the expiry of options on indices and shares: major investors should be busy reviewing their positions in the next few hours.
GOLD, THE LANDSLIDE STOP AT 1.753 DOLLARS
The protagonist of yesterday's session was gold, down 2,2%, at 1.753 dollars an ounce. During the night the descent stopped. A rebound is underway this morning to $1.759, +0,3%. One of BlackRock's large funds, the Global Allocation Fund, has zeroed out its gold portion in view of an acceleration in economic growth that will lead to a normalization of interest rates. This was announced by manager Russ Koesterch to Bloomberg TV.
The 1,33-year Treasury Note trades at 1,177%. Euro dollar barely moved at 0,4, the euro lost 72,4% yesterday. WTI oil down slightly to XNUMX dollars a barrel.
EUROPE ACCELERATES THANKS TO VACCINES
Good news for the Old Continent. The trend of the pandemic gives hope for a more robust economic recovery than previously thought. This was confirmed by the president of the ECB, Christine Lagarde, according to which the euro zone economy is recovering faster than expected just six months ago, thanks to the rapid vaccination campaign which has allowed the reopening of large sectors of the economy. The combined GDP of the 19 countries that share the single currency is now estimated at pre-crisis levels before the end of the year, even if the growth trend has not yet fully stabilized. Against this backdrop, the markets are betting that the Fed will only move in November but the tapering will be more decisive than what was decided by the ECB. Hence the rise in the price lists, only partially reduced in the end with the drop in oil prices. And the new dollar advances.
MILAN (+0,78%) NEAR 26 THOUSAND POINTS
Piazza Affari scores a gain of 0,78% only touching, however, the bar of 26 points (25.963).
INDITEX RUNS, LAGARDERE (+24%) IN THE SIGHT OF BOLLORÉ
Frankfurt closes up by 0,22%, in line with London (+0,15%). Madrid (+1,04%) was the best price list: the clothing giant Inditex dragged the bull along: +5% after the data for the semester.
Paris +0,49%. The French stock market was enlivened by the latest offensive by Vincent Bolloré, who through Vivendi acquired 18% of Lagardére, which owns a significant media portfolio, including Canal Plus. The share of prey rose by 24% even before Vivendi requests authorization to launch the takeover bid.
Bnp Paribas has placed its stake in Euronext, equal to 2% of the capital, through Accelerated BookBuilding.
The prospect of a recovery in travel and tourism has given Ryanair wings (+4%), which has raised traffic estimates to 225 million passengers a year by 2026, from the previous 200 million.
DEFENSE, AXIS BETWEEN AUSTRALIA, USA AND UK: FURIOUS FRANCE
The attention of the Elysée (and of the press) yesterday focused on the slap ("worthy of Trump", said a minister) suffered by France: Australia liquidated the 66 billion dollar agreement with Paris in defense , including the construction of a nuclear submarine contradicting the assurances given to Macron two weeks earlier. On the other hand, a three-way axis was born between Canberra, the United States (which will sell their model) and the United Kingdom. A setback which, among other things, will create new serious problems for the Saint Nazaire shipyards, already protagonists of the long and failed engagement with Fincantieri (+0,07%). The Australian deal, on the other hand, offers good opportunities to Drs, Leonardo's US subsidiary (+0,33%), which will land on Wall Street within the year.
SPREAD BELOW 100 POINTS, THE BUND RISES (-0,28%)
The BTPs of the Bunds were better in yesterday's session. German stocks move in perfect sync with US T-bills, which are moving ahead of the Fed meeting.
Before returning to just below -0,3%, the 2031-year Bund rate in August 0,283 touched -100% – a two-month high – allowing the Italy/Germany spread to return to just below XNUMX basis points.
CNH SUPERSTAR: THE IVECO SPIN-OFF IN JANUARY
CNH Industrial superstar (+4,27%) after CEO Gerritt Marx confirmed that the listing of its subsidiary Iveco is scheduled for the first half of next year, perhaps as early as January. Intesa analysts underline that "the potential listing of Iveco as early as January confirms the strong execution of the plan which allows CNH to make better use of each individual asset".
The Exor subsidiary, which yesterday announced an order from the Port of Hamburg for electric trucks developed with the American Nikola, will also participate as a corporate partner in the 5G Open Innovation Lab project, a global ecosystem of companies, academics and government institutions , which aims to promote the adoption of 5G technologies and innovation in this branch.
Stellantis is also advancing (+1,18%); plus sign also for Ferrari (+0,2%). The parent company Exor also rose (+1,74%).
Nexi (+2,9%), Finecobank (+2,01%) and Italgas (+1,81%) also appear at the top of the list.
RAISE ITS HEAD UNICREDIT AWARDED BY JEFFERIES
Among the banks, Unicredit rears its head (+1,45%). Jefferies analysts increased the target price of the stock to 13,4 euros and confirmed the indication to buy. Intesa also did well (+1,28%).
In the insurance sector, Unipol shines (+1,9%). Generali rises by 0,88%, while the process envisaged for the renewal of the board of directors continues, which will be sanctioned in the spring by the shareholders' meeting.
STM RISES OVER 40 EUROS, RECOVERS ITALGAS
Enel surpasses the 40 euro STM wall (+0,8%) among utilities while awaiting government decisions on bills.
A2a rebounds (+1,1%). Italgas recovers (+1,8%) while Gas Plus, after a suspension, scores a 15% increase.
Maire Tecnimont climbs again (+2,4%), in negative ground for oil, conditioned by the bad performance of the day for crude oil. Saipem loses 1,72%. Tenaris -1,18%. Still sales in the luxury sector, in particular Moncler (-0,5%).
FNM IN FLIGHT, THE STRATEGIC PLAN TODAY
FNM is out of the basket, with a leap of 8,8% on the eve of the presentation of the strategic plan tomorrow. “We expect an attractive dividend policy”, writes Equita.
SAFILO, THE FERRAGNI EFFECT IS ALREADY OVER
Down Safilo, with a drop of 7,6% on profit taking after the leap in the previous sessions following the agreement with Chiara Ferragni for the launch of a new eyewear line. Gibus shines (+4,71%) at Aim: the manufacturer of environments for terraces and gardens closed the first half with a net profit of 6,2 million euros (against 1,5 million in the same period of 2020).
