“We didn't have a broad enough view of our responsibility and that was a big mistake. It was my mistake, and I'm sorry. I created Facebook, I manage it and I am responsible for what happens here”. Mark Zuckerberg, following the advice of lawyers and communication gurus, chose the path of mea culpa in front of the 44 senators summoned for the "trial".
“It is now clear – he added – that we have not done enough to prevent our tools from also being used to do damage. This applies to fake news, foreign interference in elections and hate speech, as well as privacy. Judging by the market reaction, the strategy was the right one: +4,5%, Facebook's biggest rise in the last two years.
This morning came the defense of Cambrydge Analytica: "We have not hacked Facebook, nor broken the laws, we have not influenced the Brexit referendum, we collect data only with informed consent, we are conducting an independent investigation to demonstrate that we do not possess any data, we will share the results of this investigation as soon as we receive them”: “To be clear – adds the company – Cambridge Analytica has not illegally or inappropriately collected or shared data with anyone else. Cambridge Analytica has not broken any FEC regulations."
Zuckerberg's show, together with the reassuring words of Chinese President Xi Jingping, favored the recovery of the price lists on which the new emergency in Syria does not weigh for now. The attention of the US markets, moreover, is focused on the forthcoming start of the earnings campaign which, thanks to the tax reform, promises to be the richest in the last seven years: profits, according to Thomson Reuters, have risen by 18,5% .
CHINA ACCELERATES THE OPENING OF FINANCIAL MARKETS
The measures announced by Xi pushed Chinese stock markets higher this morning. Hong Kong gains 0,7%, the CSI 300 index of Shanghai and Shenzhen stock exchanges 0,6%.
Beijing has announced concrete measures to open up the financial market. Tonight, speaking at the Boao Forum, the new governor of the Chinese central bank, Yi Gang, said that by the end of the month, the link between the Shanghai and Hong Kong listings will be increased, up to four times the current one, to 52 billion yuan (US$8,3 billion). Gang also pledged to leave more room for foreign insurance companies in financial market operations.
The Japanese stock market dropped slightly (Nikkei -0,2%). Little to report in the rest of Asia: modest rise in the Indian stock market (BSE Sensex +0,3%). South Korea's stock market is flat.
SPRINT AND T-MOBILE, NEW WEDDING TRIALS
Technology and oil were the engines of Wall Street's comeback as we wait for the accounts of the big banks to be released on Friday.
The Dow Jones (+1,8%) is up sharply, while the Nasdaq is even better (+2,07%). The S&P 500 index rose by 1,67%.
We return to talk of a major merger in the telecommunications: Sprint rises by 17,1% after the resumption of negotiations for the merger with T Mobile (+5,7%).
OIL BOOM BEYOND 70 DOLLARS. ENI PRODUCTION +4%
Great maneuvers on oil, at the center of the tensions involving Russia and Saudi Arabia's intention to push prices up to support the strong investments planned by Mohammed bin Salman. Brent oil trades at $70,7, up 3,4%. Over the past two days, North Sea crude has gained about $4.
In Piazza Affari Eni +0,8%. At the Investor Day in New York, CEO Claudio Descalzi announced that the group's hydrocarbon production grew by 4% in the first quarter of 2018. Tenaris rose sharply (+2,8%). Purchases also on Saipem (+1,27% to 3,12 euros). Yesterday a project framework agreement (pfa) was signed in Uganda for the development of the Hoima refinery. The complete plant, when finished, will have a value of 4 billion dollars.
The Brazilian stock market rebounded: Bovespa index +0,7%, from -3,3% yesterday, a thud caused by the news of the arrival in prison of former president Lula da Silva. The real also recovered, to 3,40 against the dollar, after three days of sharp depreciation.
MILAN +6% IN 2018. VOLKSWAGEN WAKES UP FRANKFURT
The Chinese president's words were particularly welcome yesterday by Frankfurt operators, the most sensitive to the risks of a trade war. However, all European price lists without exception welcomed Xi's message with great favour.
Milan (+0,52%) also recorded an increase, despite signs of a slowdown in the economy and the stalemate on the political front. The FtseMib index (today +0,6% at 23.172 points) closes at its highest level since the beginning of February, extending the 2018 gain to a brilliant +6%. The Eurostoxx index loses 2% in the same period.
The most effervescent market was Frankfurt (+1,11%). The leap forward of Volkswagen (+4,46%) contributed to sustaining the advance of the auto sector, on the eve of a revolution in the management team with the probable end of the Mueller era he will be replaced by Herbert Diess, current head of the Volkswagen brand.
Bayer contributed to the positive day (+4,73%), one step away from the go-ahead for the merger with Monsanto.
LVMH +4,9%: RECORD SALES IN THE FIRST QUARTER
Paris did well (+0,84%), with Lvmh (+4,82%) in great shape thanks to the turnover in the first quarter above expectations: +10% to 10,854 billion euros (+13% on a like-for-like business basis and taxi). Madrid is more backward (+0,19%).
THE RUBLE SUFFERS, MOSCOW POSTPONES THE AUCTION
London is also advancing (+1%). Ivan Glasenberg, number one at Glencore (+2,17%), announced his resignation from the board of the Russian Rusal to protect the raw materials giant from US sanctions.
In the meantime, the target practice against Russian finance continues. The ruble weakens further against the dollar (-4,5% to 63,45 rubles against the US currency) and the government bond auctions scheduled for today are canceled "due to the unfavorable market situation". The rebound of shares on the Moscow Stock Exchange (+3,96%) only reflects the devaluation of the currency.
NOWOTNY (ECB): RATES MAY RISE TO -0,2%
The February OECD leading indicator for Italy falls, providing "signs of a slowdown in the growth phase" of the country's economy. The index — constructed to anticipate economic trends with a six to nine month horizon — fell in February to 100,7 points from the 100,8 recorded in the previous three months. The OECD analysis indicates signs of a slowdown in growth also for the economies of Germany and France and for the euro area as a whole.
The European Central Bank can spread the process of increasing interest rates in the euro area by first revising upwards the deposit rate currently below zero, then bringing it into positive territory. This was said by the exponent of the ECB, Ewald Nowotny, adding that Qe should end by the end of the year.
Immediately after Nowotny's words, the euro rose to a session high of 1,2377 against the dollar, 132,37 against the yen and 0,8727 against the pound. At the same time, the yield on the 0,52-year Bund rose to an intraday high of XNUMX%.
MORGAN STANLEY PROMOTES BTPs, PIMCO "NEUTRAL"
"On the Italian debt we are rather neutral, we have been for some time: the economy is doing well but there is political uncertainty". Dan Ivascyn, Pimco's group CIO who manages the Pimco Income Fund, told Reuters.
The manager's opinion summarizes well the calm phase of the markets on the eve of the mid-month auctions. A study by Morgan Stanley entitled "April showers bring bond bulls" is more explicit, recommending Italian bonds: "We believe that the price at which XNUMX-year BTPs trade, also due to the uncertain outcome of the elections, represents an opportunity to take a long position which can benefit from the good fundamentals of the economy”.
TODAY THE AUCTION BOT, LONG-TERM LISBON ISSUE
BTPs closed slightly down, with the spread widening to 128 points in the afternoon following the news of the Portuguese union for a new 15-year government bond. The yield on the 0,52-year Bund rose to a maximum of XNUMX% after Nowotny's words.
The Lisbon placement, which could arrive as early as today, adds to the syndicate with which Ireland today issued 4 billion 15-year government bonds, further weighing down a week that already saw scheduled auctions in Germany and Italy.
The Italian Treasury is offering today 6 billion 12-month BOTs while Thursday is the turn of the medium-long term: up to 9,25 billion BTPs, with the new 3-year April 2021 and the reopening of the 7-, 20- and 30-year benchmarks.
In closing, on the gray market of Mts, the annual Bot at auction today traded at -0,39% against the -0,403% of the placement a month ago.
ACCELERA TELECOM, THE VIVENDI APPEAL IN COURT TODAY
Still on the shields Telecom Italia, the best European telephone stock with a leap of 3,04% which pushes the quotation to the highest since last August at 0,88 euros (+0,4%). Savings also rose by 2,5%. The stock is obviously supported by the prospect of a battle to the last vote between the opposing lists of Vivendi and the Elliott fund, which has risen to 8,848%, but with options to reach 14%. Today the emergency appeal to the Court of Tim will be launched to make the integration of the agenda of the meeting of 24 April, wanted by the board of statutory auditors, ineffective.
Mediaset +1,3%.
XI AND THE GERMAN CAR PUSH FCA +1,4% AND CNH +2,7%
The changing of the guard at Volkswagen, together with Xi's openings to car imports in China are at the basis of the rise in the European automotive sector (+1,9%). Fiat Chrysler gains 1,4%, Cnh Industrial +2,7%.
Other industrialists are doing well too. Prysmian +2,4% under the influence of a report by Jp Morgan on forecasts of first quarter 2018 results, which the group will approve on 10 May. Also recovering Stm + 2,6%) after the recent declines.
Banks are weak: the sector index drops by 0,1% against a 0,5% increase in the European sector. The crisis in Russia slows down Unicredit (-0,9%), also down Banco Bpm (-1,4%). Sales on Mps are back (+3,1%).
Mediobanca (+1,26%) and Intesa (+0,5%) went against the trend.
THE AWAKENING OF GEDI, INDIA AWARDS PIAGGIO
Gedi rallied 4,6%. The shares began a downward movement a week ago, after the group denied rumors about a hypothesis of integration with the newspapers of the French entrepreneur Xavier Niel (Le Monde, Le Nouvel Observateur).
Money also on Ovs (+1,35% to 4,972 euros), on which Kepler Cheuvreux confirmed the buy recommendation and the target price of 7 euros pending the accounts, to be published on 18 April.
Piaggio +1,7%. In the first quarter, sales expressed in volumes increased by 6% year on year, thanks to the boost of the Indian and Asian markets.
Cerved -0,5%. The shareholders' meeting approved the distribution of a total dividend of 52,7 million euro, equal to 0,27 euro per share. Yield 2,7%.
Amplifon (+1,7% to 15,28 euro) established a new absolute record.
