Never underestimate China, a land of secrets and financial miracles. Yesterday evening, when Evergrande's default was already taken for granted, Hong Kong's Citibank received a transfer of 83,5 million dollars, sufficient to honor the interest on the bonds that expired a month ago. The disaster, therefore, was at least postponed by a week, because another 29 million dollars will fall due on the 200th. But what would be the point of yesterday's payment if there wasn't the will to pay off the debts? How this is possible remains a mystery, because all the subjects involved, public and private, are silent. And, just to confirm the attitude towards freedom of the press, yesterday it was decided that the services of Caixin, the country's most authoritative financial newspaper, cannot be picked up by other online press outlets. However, the markets are celebrating the happy news that frees the financial skies from the darkest cloud on the horizon. And the US Stock Exchanges set another record: the S&P index, up for seven sessions in a row, rises to a new high at 4,549,76. Serene weather also in the skies of the Bel Paese.
S&P'S REPORT CARD ON ITALY TONIGHT. YOU POINT TO A GOOD VOTE
Tonight S&P will update the rating on Italy, an event awaited in the past with apprehension, today an opportunity for a new promotion of the Draghi era. In the face of the arrival of international investors, the atmosphere in Piazza Affari is also improving. “This time maybe we'll manage not to hurt ourselves,” Guglielmo Manetti, CEO of Intermonte tells us superstitiously, making his debut on Aim yesterday after an IPO that recorded 40% of offers from abroad.
Evergrande shares rebound in Hong Kong (+5,4%), while the Hang Seng rises by 0,4%.
PMI INDEXES ON THE RISE IN TOKYO
Other Asian markets are also on the rise. Tokyo +0,7%: Japan's manufacturing PMI rose to 53 in October, while services PMI increased for the first time in 21 months, to 50,7, after the easing of emergency restrictions healthcare. The CSI 300 of the Shanghai and Shenzen lists gains 0,9%.
FED, BANKERS FORBIDDEN TO PURCHASE SECURITIES
Wall Street futures contrasted. Yesterday, in addition to the S&P record, there was a lengthening of the Nasdaq (+0,6%) on the eve of the Faang accounting week, the big names in technology and digital. The Dow fell slightly (-0,02%), against the sharp decline of IBM.
The appointments to the Fed are approaching: the confirmation of Jerome Powell is favored, but, after the recent scandals, yesterday the Central Bank issued a ban: bankers will no longer be able to buy or sell shares or related products.
INTEL CAPITAL, T-BONDS ON THE RISE AGAIN
In the after market there was also the tumble of Intel (-8%). The server and computer chip maker ended the third quarter with $18,1 billion in revenue, while analysts had expected $18,2 billion. The company has revised its full-year earnings forecast upwards, but CEO Pat Gelsinger has warned that investments in the coming years will negatively impact profitability.
Interest rates are on the rise: the yield on ten-year Treasury Notes is at its highest for the period at 1,68%, after having touched 1,70% overnight. Euro dollar flat at 1,162, from -0,2% yesterday.
THE VOLTAGES ON THE METALS DEFLATE
WTI oil down 0,5% to 82 dollars a barrel, yesterday -1%. Brent at 84,77 dollars a barrel. Inflationary tensions on industrial metals deflate: yesterday copper lost 5%, aluminum 3%. Bitcoin stabilizes at $63.000 after yesterday's slide (-5%).
MERKEL'S FAREWELL. “TURKISH THINGS” SCARE THE EUROZONE
On the day when the EU summit greets Angela Merkel's latest effort, committed to finding a solution to the crisis with Poland, Europe is facing the Turkish storm: the incorrigible Erdogan has pushed the Turkish Central Bank, albeit with inflation at 20%, to lower the cost of money by 200 basis points. The currency thus lost 3% and reached new record lows, breaking through the barrier of 11 lire for 1 euro and 9.44 lire for 1 dollar. The central bank announced in a statement that until the end of the year it will be difficult to take a decision to cut rates further.
BTP AND BUND AT THE HIGHEST, FOREIGNERS GET 70% OF THE GREEN BOND
On bonds, the yield on the 10-year BTP rose to 0,946%, while the Bund with the same duration traded at -0,90%: both are at year highs. The Btp/Bund spread remains at 104 basis points.
The governor of the Bank of Italy, Ignazio Visco, speaking on World Savings Day, said that we need to think of at least a common management of the debt linked to the pandemic of the EU states.
Foreign investors bought 70% of the BTP green April 2045 reopened by the Treasury for 5 billion with orders exceeding 55 billion euros.
European stock markets move away from their six-week highs and close in contrast: Eurostoxx 50 index -0,3%. Among the growing sectors Automotive (+1,1%) and Financial Services (+0,6%); weak Basic Materials (-3%) and Energy (-0,5%).
MILAN -0,21%, ITALIAN INDUSTRY IS RUNNING
Piazza Affari yields 0,21 (26.525 points) after having attempted, in the last phase of trading, to reverse course. In August, the turnover of Italian industry grew: Istat points out that in the quarter the foreign component of the seasonally adjusted index shows a more lively trend than the domestic one. With reference to the main groupings of industries, in August the seasonally adjusted turnover indices show a cyclical increase for intermediate goods (+2,4%) and consumer goods (+0,4%), while they record a reduction for energy (-2,5%) and capital goods (-0,3%).
QUARTERLY REPORTS: ABB COLLAPSES, UNILEVER LISTS TEA ON THE STOCK EXCHANGE
Frankfurt loses 0,25%; Paris -0,29%; Madrid -0,8%; London -0,45%. In contrast Amsterdam (+0,27%).
Meanwhile, yesterday's quarterly reports recorded more shadows than lights. In particular, the mining sector, heavily exposed to China, slipped by 2,9%. London-listed Anglo American fell 2,66% despite reporting a 2% increase in total output in the third quarter.
Abb collapses (-6,23%). The Swiss engineering and technology group has reduced its sales estimates due to possible component shortages.
Unilever +1%. The company reported revenues of 13,45 billion euros in the third quarter (+4% on the same period last year) and expects growth to remain in the order of 4,4% for the full year, certainly at within a range of 3% to 5%, while margins will remain flat, in line with forecasts. Unilever believes inflationary pressures will continue next year and intends to respond with appropriate price action and productivity-boosting measures to limit cost increases.
HERMES IS NOT FEAR OF THE CHINESE SYNDROME, A BUY FOR RICHEMONT
Vivendi rises in Paris (+0,48%), but the results of Canal Plus, announced after the Stock Exchange, anticipate a new extension this morning. Luxury is doing well thanks to Hermès (+0,8%), toned down also on the Chinese market. Richemont +0,1%: the owner of Cartier has been promoted by HSBC to buy from hold.
DIASORIN, STM AND THE UTILITIES AT THE TOP OF PIAZZA AFAFRI
Few stocks bucking the trend on a day dominated by nervousness and the drop in oil prices. The pink jersey belongs to Diasorin (+ 2,1%), in the wake of BioMerieux which revised its forecasts for 2021 upwards.
Stm follows (+1,5%), recovering after the thud on the eve. The Hermès estate helps luxury: Cucinelli and Ferragamo go up by 2%, Moncler by 0,84%.
Utilities were also positive, supported by the upward revision of analysts' opinions: Hera +1,04%, Italgas +0,68%, A2A +0,45%.
STELLANTIS/SAMSUNG AGREEMENT ON BATTERIES
Stellantis accelerates in the electric car. An agreement was announced overnight with Samsung to jointly develop a battery factory in the United States with a production capacity of 23 gigawatts that will go into operation in 2025.
WEAK BANKS, BOOM DEBUT FOR INTERMONTE
The oil sector, on the other hand, was in the red, penalized by the drop in crude oil prices: Saipem -0,81%, Tenaris -1,95% and Eni -1,49%.
Among the banks, Banco Bpm slows down (-0,7%), recovering from the sales in the morning. Weak Unicredit (-0,2%), while Mps rises by 1,5%. Intermonte made a brilliant debut on Aim (+9%).
WIIT FLIES TO MKASSIMI, TARANTO PER MAIRE MISSION
Wiit (+9%) renews the historical highs in the wake of the quarterly results of the German Sap, driven by the iCloud business. Intesa Sanpaolo is promoting the share from add to buy with a target price raised from 28,5 to 35 euros.
Fly Maire Tecnimont (+3,95%). The subsidiary NextChem has entered into an agreement with Acciaierie d'Italia (formerly Ilva), for a feasibility study on the use of circular gas (syngas) in the Taranto steel plant obtained through NextChem's chemical recycling technology, based on the recovery of carbon and hydrogen contained in plastic and dry waste. TAS CH rises by more than 4% and is approaching the price of the 2,2 euro takeover bid announced today by Solidus Bidco, a vehicle controlled by the private equity fund Gilde, with the aim of delisting.
