The mid-August bomb comes from China via Automotive News: Fiat Chrysler gains 4% to 10,21 euros following rumors from the US site according to which a well-known Chinese car company, probably Great Wall, has made an offer to buy control of the group at a price slightly higher than the current Stock Exchange price. Last week, according to rumors, a delegation of Chinese managers met with FCA managers in Auburn Hills, the American headquarters of Fiat Chrysler, near Detroit. Other sources say FCA executives have flown to China to meet with the management of automaker Great Wall Motor. The Agnelli family, which through Exor +1,8% controls about 30% of the capital, would have rejected the proposal in any case, judging it too low. In any case, the group would have excluded Alfa and Maserati from the sale.
Ferrari? rises by 1,6%: Berenberg has raised the target price to 110 euros from 90 euros. Analysts have forecast that the €100m loss on the Formula One stake can be written off within five years, which should deliver a 15% higher EBIT than in 2016 or a profit boost of almost 4% each year. The combination of a higher profit and lower costs, according to Berenberg, will lead the Ferrari franchise in F1 to finally reach a profit of 16 million euros in 2021.
Net of the automotive emotions, Piazza Affari, like the other European stock exchanges. he is experiencing a positive day in the name of recovery after last week's declines, triggered by the crisis in relations between the US and North Korea. The position taken by China contributes to the improvement of the situation, with the decision to suspend imports of raw materials (iron and other minerals) from North Korea, thus abandoning the attitude of neutrality in the dispute between Washington and the Pyonyang government, who threatened to attack US territory with missiles.
Instead, the contraction of industrial production in the Eurozone in June, down by 0,6% compared to the previous month and an increase of 2,6% on an annual basis, does not create problems. The strongest increases concern banks: the European Stoxx index for the sector rises by 1,5%. The French Société Générale rose by 2,9%, Deutsche Bank +2,7%, Santander +1,9%. In Milan Unicredit gains 1,7%, Intesa +0,6%, Ubi +2,7%, Banco Bpm +2%. Generali advances by 0,6%, Unipol +1,3%.
In Milan, the Ftse Mib index rose by a good 1%, over 21.500 points. The Paris Stock Exchange rises by 0,9%, Frankfurt +1%, London +0,6%. The best place is Madrid +1,3%. The prices of "safe havens" are falling. Prices of bonds and gold fell, trading at 1.281 dollars an ounce, down 0,6%, after gaining 2,4% last week. The euro/dollar exchange rate is little moved at 1,180. The yield on the 10-year German Bund edged up to 0,42%, from 0,38% on Friday. Stable at 2,02% for our Btp, so the spread closes at 159 basis points (from 162).
Crude oil prices are falling on the back of a slowdown in China's refining activity, which raises questions about the resilience of demand in the world's second largest economy. Futures on Brent deliveries dropped 29 cents to 51,81 dollars. The contract on the WTI loses 21 cents to 48,61 dollars a barrel. Eni is substantially unchanged, Saipem gains 1,5%, Tenaris +0,1%. In a day of thin exchanges, in the rest of the list: Enel +0,7% and Telecom Italia +0,7% advance. Moncler +1% and Ferragamo +1,4% perform well among the luxury stocks.
