Dizziness from high altitude on the Stock Exchanges, after the long series of records. The markets have now priced in the start of the next European Qe. There is anticipation for the update of the economic forecasts on the Eurozone, at the center of tomorrow's EU directorate in Cyprus. The price lists look even more at the US data on employment: we begin today with the Adp estimate of new jobs, to arrive on Friday with the statistics on payrolls: a very positive figure (exceeding the 240.000 expected hirings) could convince the Fed to eliminate the patient term from the forthcoming Monetary Committee statement, thus giving the go-ahead for the rate hike in June.
The Tokyo Stock Exchange fell this morning (-0,8%). Shanghai rebounds (+0,3%). Today, the annual Congress of the Communist Party kicks off with the inaugural speech by premier Li Kequiang. There are strong expectations of growth-promoting fiscal and monetary easing measures. India has surprisingly cut the cost of borrowing. For the second consecutive time, the operation took place without bringing together the institute's board. The Mumbai Stock Exchange rises by 1,4%, the Sensex exceeds 30 points for the first time.
Weak stocks on Wall Street, after the records set at the start of the week: the Dow Jones index fell by 0,47%, S&P 500 - 0,5%. Nasdaq - 0,56% again below 5 thousand points. The cold held the car back in February. Ford under fire (-2,6%) which suffered a 2% drop in sales: it is the worst figure among the three American companies, given that Fiat Chrysler and General Motors still reported growth, albeit lower than analysts' estimates . Oil on the rise after Saudi decided to increase the price of a barrel sold in Asia and the USA by at least one dollar. Brent at 60,65 dollars and Wti at 50,52 dollars a barrel.
MILAN AND MADRID RETREAT FROM THE HIGHESTS
He also took profits on the European Stock Exchanges. Milan falls in the final session: the FtseMib index closes down by 1,39% at 21987 points. Only Madrid (-1,47%) did worse. London (-0,74%), Paris (-0,98%) and Frankfurt (-1,14%) also fell.
THE SPREAD RETURNS ABOVE 100 POINTS. WEIGH THE GREEK UNKNOWN
While waiting for Qe, the fall in interest rates in the Eurozone is curbed and the spread widens: the yield differential between the BTP and the Bund is back above 100, at 101 basis points (+3 basis points). The 1,405-year trades at 2016%. The chief economist of the ECB Peter Praet anticipated that the EU economy is showing signs of recovery: a message read by the markets as a risk of an early stop to Qe, already foreseen until September XNUMX.
Uncertainty about the state of Greece's finances helped curb optimism. Despite Brussels' denials, the prospect of a third plan of aid to Athens. Meanwhile, the general affairs minister of the Tsipras government has declared that the privatization of utilities will be blocked and that the executive plans to bring the banks under "public control". Funding from the ECB to Greek banks in January grew by 47%, to 82 billion, from 56 at the end of December.
MARCHIONNE STUDYING THE IDEAL PARTNER FOR FCA
Fiat Chrysler's head and tail -3,3% to 13,63 euros in the afternoon after the advances on car sales data in the USA. In the morning the quotation had risen to 14,38 euros. Speaking to reporters at the Geneva Motor Show, CEO Sergio Marchionne explicitly said that FCA is evaluating various options for possible acquisitions and/or mergers. The manager said he had an ideal partner in mind for a possible agreement, without providing further details. He added that Volkswagen "isn't ideal," although he imagines it's possible to work with the German company on other things. Marchionne said the agreement with Mazda "is fine" and that "it is possible that we can do other things together" in addition to building a sports car on the Mazda MX-5 platform.
As far as Ferrari is concerned, the IPO on Wall Street will probably take place in the third quarter of 2015, and no decision has yet been made on the second listing place, which may or may not exist. Also for Ferrari, the management is evaluating the scheme of a registered office in the Netherlands and the creation of loyalty shares (shares with double voting rights for stable shareholders), which would allow Exor, the holding company of the Agnelli family, to have broader control over the shareholders' meeting of the House of Maranello.
TELECOM, THE GOVERNMENT (FOR NOW) DOES NOT TURN OFF THE COPPER NETWORK
Telecom Italia closed down 0,28% at 1,077 euros after rising to 1,1040 euros in the morning. The Council of Ministers today approved the broadband plan which envisages coverage targets of up to 50% of the population at 100 mbt/s by 2020. The government is aiming to extend the network to buildings but without crossing the door entrance to customer homes. The plan envisages public and private investments of 6 billion between now and 2020. Another 2 billion will be made by companies on the basis of the already announced investment plans. Finally, the government hopes to be able to "urge" companies to invest an additional 4 billion. There is no reference to the technology, copper or fiber, with which the Ring will be made. Minister Guidi said that the "technical aspects" are left to the companies.
TOWERS UNDER CHECK: DOWN AND THE TOWERS. RCS IS DIVIDED ABOUT THE BOOKS
Stalemate day for the matches in which Fininvest is involved. Mediaset brakes (-2,7%). The Antitrust will ask the Alfa company for clarifications on the offer by Ei Towers (-2,29%) for Rai Way (-1,96%), deeming the information provided in the communication to be "seriously incomplete" and not suitable for allow for a complete evaluation of the operation. The parties have a deadline of five days to provide the requested information.
The media sector was heavy after the stalemate of the RCS board of directors (-5,85%), divided on the sale of books to Mondadori (-1,58%).
HOLDS CARIGE. SCARONI RESCUES GENERALI IN RUSSIA
Sales are raining on Monte Paschi (-9,9%) on the eve of the board of directors should deal with the issue of the capital increase and the grouping of shares. Carige, on the other hand, holds (+0,42%) after the leap (+10,23%) two days ago. The news that the Malacalza family has reached an agreement with the Foundation for the purchase of 10,5% of the bank continues to support the prices.
The rest of the bankers are in red. Bper -3,2%: the board of directors decided yesterday to propose to the shareholders' meeting, convened for 18 April, the distribution of a dividend of 2 cents per share. All balance sheet data confirmed, closing with a consolidated profit of 29,8 million. The Bigs are down: Unicredit -0,5%, Intesa -1,7%. The Popolari are also down: Bpm -0,95%, Banco Popolare -2,8%.
Generali fell slightly (-0,38%). Banca Akros judges the effect of the rumors on the appointment of Paolo Scaroni to the board of the Russian subsidiary Ingosstrakh as neutral, on which it does not rule out new writedowns.
FINMECCANICA AUCTION PARTS OF DRS
Among the Treasury's subsidiaries, StMicroelectronics rose again (+0,6%) on Investor Day. Finmeccanica also closes up 0,5%. According to Reuters, the Italian defense holding has started the sale of some assets of its American subsidiary Drs Technologies, appointing the investment bank Jefferies Group to collect expressions of interest. The assets that Finmeccanica wants to sell concern aviation, logistics and tactical communications and are estimated to be worth $200 million. Finally, Mediobanca Securities raised Fincantieri's target price (-0,13%) from 0,82 to 0,97 euro, confirming the outperform recommendation.
NORTH EAST: DE LONGHI TOPS UP, DISAPPOINTING THE LUXOTTICA COUPON
Citigroup confirmed Luxottica's neutral recommendation and €50 target price (-0,54%) after group accounts which, according to analysts, “were strong but broadly in line with the consensus”. Weighing the disappointment on the dividend, less generous than expected.
On the other hand, a strong increase for De' Longhi (+4,2% to 18,0 euros), after better-than-expected results. 2014 closed with a net profit of 126,5 million euros, an increase of 8,2% compared to 2013. Revenues increased by 6,8% to 1,73 billion, and Ebitda before charges non-recurring at 260,1 million (+7,7%). At the end of December 2014, the net financial position was positive for 89 million (from a debt of 9 million as at 31 December 2013). The BoD resolved to propose the distribution of a dividend of 0,41 euro per share with a payout of 48%. A dividend of 2013 was distributed on 0,40.
