Piazza Affari is still busy digesting the relay at the top of the Agnelli galaxy, after the dramatic departure of Sergio Marchionne. Waiting to record the half-yearly data tomorrow which should confirm the extraordinary financial and industrial performance of the management of the Italian-Canadian manager. The spotlights are thus already focused on London, now the center of the group (led by two British, Mike Manley and the financial director Richard Palmer). But in the meantime, the signal of revenge came from the note from Standard & Poor's which confirmed the ratings of the group. And so yesterday evening the tension over Ferrari eased on Wall Street, halving the losses to -2,5%.
Meanwhile, a precise signal is coming from the stock exchanges: the markets do not obey Donald Trump. Despite the US president's warnings to the Fed to curb the increase in the cost of money and, consequently, the dollar which, according to the White House tenant, risks nullifying the effects of the "America First" policy, the yield on T bonds The US has once again approached the 3% threshold (at 2,96%) discounting the next upward moves by the Fed.
STRENGTH IN JAPAN, BEIJING DEVALUES THE YUAN
Two factors contribute to pushing rates up. First of all, the change of course of the Bank of Japan, from which the first signs of a slowdown in debt purchases are arriving, which has now reached paradoxical levels (60% of Japanese debt is in the hands of the BoJ), which has generated an upward effect on government bonds of the planet; the march of US GDP, seen by the president himself as growing by 4,8% in the second quarter, an almost unsustainable rate. Pending the confirmation of these numbers, Wall Street recorded the astonishing performance of Alphabet (+4% after the Stock Exchange).
Google's parent company achieved a 25% increase in turnover. Earnings per share stood at $11,75, better than expectations at $9,59. The profits for the quarter are thus sufficient to pay 60% of the maximum fine (5,1 billion dollars) imposed by the EU. A test of strength that Trump certainly likes, who will receive Jean-Claude Juncker tomorrow, determined to proceed with the tariffs on European cars, barring significant concessions.
The markets are registering the effects of so much ferment:
Chinese stock markets are advancing, under the pressure of the incentives decided by Beijing to offset the effects of US tariffs. Shanghai Composite Index climbs 1,7%, Hong Kong Hang Seng Index climbs 1,5%. The yuan slipped to its lowest level in 12 months, from the beginning of April to today -10% against the US dollar. President Xi Jingping has begun his mission in Africa, while Beijing extends a hand to Brazil to establish a "long-term relationship".
Tokyo also advances +0,5%. Little movement last night Wall Street awaiting the quarterly reports that will animate the market from tonight: Dow Jones – 0.06% S&P 500 +0,18%, Nasdaq +0,28%.
IRAN/USA SPARKS, BUT OIL SLOWS DOWN
Oil held back this morning: Brent at 72,83 dollars, American Wti at 67,73. However, the tough confrontation between Iran and the USA hovers over the market. The president of the Islamic Republic, Hassan Rohani, has raised the tone against Donald Trump, guilty of having reintroduced sanctions on Iran starting from next November 4th. "If we cannot export our oil, no other country in the region will be able to do it," Rohani said directly addressing the number one in the White House. Dusting off an old Persian proverb, he added that it is better "not to play with the lion's tail because this would only lead to regrets", alluding (according to experts) to the possibility of closing the Strait of Hormuz, through which about a fifth of the world's crude passes, i.e. 30% of that moved by sea.
Eni on the rise in Piazza Affari, on equality. Saipem -0,7%, Tenaris -1,1%.
BUSINESS PLACE LIGHTNING UP
The winds of war on tariffs and on the Iran front contributed to a red start to the week for the European markets. Under fire, of course, the Agnelli galaxy after the dramatic (and agitated) relay at the top imposed by the worsening conditions of Sergio Marchionne. But there were other negative notes, see the negative accounts of Ryan Air -6,36% held back by competition and strikes. Complicating the day was the weakness of the dollar and the yen against the single currency which settled at 1,1701 on the greenback after opening at 1,1718 dollars (from 1,167 on Friday and 130,31 yen.
The Milan Stock Exchange brought up the rear with a loss of 0,87% at 21.605 points. The other markets also stopped below parity: Frankfurt -0,11%; Paris -0,37%; Madrid -0,08%; London -0,29%; Zurich -0,32%.
3,25 BILLION CTZ AND BTPEI COMING SOON
At the end of the session, the Italian paper zeroed its gains, going negative in a context in which, in addition to thin volumes, the approach to Italian auctions and the ECB meeting on Thursday is also starting to weigh.
The negative turn relates to Japanese stocks falling on news that the Central Bank of Japan may begin discussions of disengaging from its stimulus programme.
The German 0,34-year yield hit a nearly one-month high of XNUMX%.
The rest of the eurozone was positive, Greece in particular, after Friday's S&P improved Athens' outlook to 'positive' from 'stable', leaving the sovereign rating unchanged at 'B+'.
During the placement on Thursday 26 July, the Treasury will make available to investors between 1,5 and 2 billion euros in the CTZ maturing on 30 March 2020 and between 750 million and 1,25 billion in the 10-year Btpei.
THE AGNELLI GROUP BURNS 2,3 BILLION
The new scenario of the Fiat group took center stage in Piazza Affari. Sales of 2,3 billion euros rained down on the group's securities. In particular, Fiat Chrysler got away with a loss of 1,5% to 16,17 euros, recovering from the lows of the morning of 15,55 euros. A majority of the 14 analysts who released succession reports confirmed the stock's positive recommendations and S&P did not change its rating. The financial statements of Cnh Industrial were not too different, which reduced the loss to 1,9% in the final.
The decline of the parent company Exor (-3,4%) and above all of Ferrari (-4,9%, after breaking through the -5% barrier downwards both in Milan and on Wall Street) was much heavier.
THE RESIGNATION OF ALTAVILLA ALSO WEIGHTS
The resignation of Alfredo Altavilla, head of the EMEA area, contributed to increasing tensions. The manager already in the running for Sergio Marchionne's success has decided to leave after the choice of Mike Manley. He recently joined Tim's Board of Directors with a share in Elliott, the American fund that ousted Vivendi from control of the board.
Manley will assume the position of chief operating officer of the EMEA region on an interim basis, effective immediately. In addition, global business development activities will be reorganized reporting to Richard Palmer, Group Chief Financial Officer and Head of Systems and Castings.
BANKS GOOD, BUT CARIGE IS IN THE STORM
The banking sector was positive, the Italian index rose by 0,61%, against a European index up by 0,22%. Unicredit gained more than 1% after the EBA rejected the request of Caius Capital to open an investigation into the accounting of 'cash' in the calculation of Cet1.
Banca Carige lost more than 5% on fears of new moves to strengthen capital, after revealing over the weekend that the ECB did not approve the plan presented on 22 June and must therefore present a new plan by 30 November that evaluates also an aggregation. Vittorio Malacalza has requested the convocation of a meeting for the removal of the Board.
Money on FinecoBank (+0,59%): Banca Akros raised its target price from 9,3 to 10 euros, confirming the "neutral" recommendation. Yesterday's agenda included the first Boards of a week full of appointments for Corporate Italy.
THE DOLLAR IS BREAKING LUXOTTICA, INWIT LOOKS AT EI TOWERS
Yesterday evening, with the markets closed, they were announced the accounts of Luxottica (-0,21%). The company, awaiting the final go-ahead from the regulators to marry Essilor, closed the second quarter with revenues of 2.417 million euros, up 1,4% only considering constant exchange rates. At current exchange rates, in fact, turnover is down by 4,9%. Net income stood at 530 million (+9,8% at constant exchange rates, -5,7% at current exchange rates). The 2018 outlook was confirmed. The dollar weighed (-7,5% in the second quarter) and a revision of the distribution in Europe.
In the red after the accounts also Inwit (-1,5%). The CEO Giovanni Ferigo anticipated the closing of an agreement with Iliad and said he was interested in the telco towers of Ei Towers.
TIM AND STM ACCOUNTS COMING TONIGHT
Today the Boards are on the agenda on the results of the first half of Saipem (communicated on July 25), STMicroelectronics, and Tim + 0,76% positive yesterday. Experts think that the weak numbers of the quarter are already discounted in Tim's current stock prices and that therefore the market's focus will be on the indications for the second half that will be provided by CEO Amos Genish during the conference call.
Prysmian did well, up 1,2% in the final, reaching its highest level for a month. Fidentiis raised the recommendation to Buy from Hold.
FINCANTIERI TAKES LARCO WITH CRUISES
Fincantieri (+0,8%) has signed a Memorandum of Agreement with Princess Cruises, a brand of Carnival Corporation & plc, the largest cruise company in the world, for the construction of two next-generation cruise ships of 175.000 tonnage gross, which will be the largest so far made in Italy, with deliveries scheduled for the end of 2023 and spring 2025.
Thud by Datalogic (-9%), the worst of the Star. Kepler-Cheuveux cut the rating from Buy to Hold.
