Texas, which was the first to reopen its activities by snubbing the pandemic, was forced to back down by the increase in cases of contagion. The fear of the second wave is also growing in Europe. And the tension on tariffs remains high: Donald Trump has asked the offices to verify if China complies with the agreement on the importation of lobsters from Maine, otherwise retaliation will be triggered. But, despite everything, the "animal spirits" are very much alive, as demonstrated by the blitz of Generali in Cattolica or the PSA/FCA affair which is now closer to its goal.
Yesterday the US banking authorities thought about giving the Bull the charge: the Federal Deposit Insurance Corporation announced its willingness to loosen the restrictions on the more speculative banking activities envisaged by the Volcker Rule. Banks would have the freedom to go back to investing without constraints in venture capital funds, or to lower solvency margins in derivative transactions. The market response was immediate: Goldman Sachs rose by 4,6%, JP Morgan +3,5%, Morgan Stanley +4%.
The Taurus wind was also felt in Asia: the Nikkei rose in Tokyo (+1%), Seoul's Kospi +1%, Singapore's FTSE Straits +0,8%. The markets of China and Taiwan remain closed for holidays. A few hours ago the United States Senate approved the bipartisan law which provides for sanctions for those who violate Hong Kong's independence.
On positive ground, thanks to the boost from finance, the US markets: Dow Jones +1,18%, S&P 500 +1,09%, Nasdaq +1,10%.
With markets closed, the Federal Reserve released the results of the stress tests on the credit sector, putting a brake on dividends and share buybacks.
Walt Disney (-0,63%) has postponed the reopening of theme parks for the second time. He also risks missing the premiere of the film "Mulan", set for July 24th.
Due to the closure of stores due to the pandemic, Nike closed the quarter with significant net losses and a 38% year-on-year drop in sales: e-commerce is not enough.
Labor market conditions are not improving. Unemployment claims are stable at around 1,5 million.
EU STOCK EXCHANGES AHEAD, THE ECB IS STUDYING NEW AID
The stock exchanges of the Old Continent raised their heads after the abrupt stop on Wednesday. But concerns about deflation emerge from the reports of the pandemic and the minutes of the last meeting of the ECB directorate: the epidemic has frozen the signs of a rise in prices that were seen in the first part of the year and the problem is almost all in demand which remains weak. There is no prospect of a rapid exit from the emergency phase, on the contrary, from the reasoning of the members, the possibility emerges of new unconventional monetary policy interventions capable of revitalizing growth.
GENERALI ENTERS, CATTOLICA TAKES FLIGHT (+37%)
Piazza Affari (+0,37%) achieved a timid rise, to 19,234 points. The session was illuminated bytransaction between Generali (+0,3%) and Cattolica, shot up by 37%. The two companies have signed a strategic partnership which provides for the commitment of the Lion of Trieste to subscribe to a capital increase without option rights of 300 million euros, subject to the approval by the Veronese company of the transformation into a joint stock company and certain statutory changes. Generali will hold 24,4% of Cattolica, but will also be able to subscribe pro-rata to the subsequent capital increase, up to a maximum of 200 million, intended for shareholders.
The capital increase values Cattolica at 5,5 euros per share, with a premium of 52% on the previous closing prices. An excellent deal also for the current major shareholder, Warren Buffet, who owns 9,9% of the company.
WIRECARD TOWARDS BANKRUPTCY IN FRANKFURT (-70%)
In the rest of Europe, Frankfurt gained 0,65% despite the Wirecard earthquake (-70,24%), which initiated the bankruptcy procedure.
Better Madrid (+1,01%). London is more backward (+0,36%). Four years after the Brexit vote, Bloomberg notes, the City's main index is virtually unchanged in pounds, but down 20% in dollars.
FCA/PSA. BULGARIAN MAJORITY FOR THE MERGER
In Paris (+0,97%) the first act of the merger between Peugeot and Fiat Chrysler took place. The PSA shareholders' meeting approved the equal merger between the two houses with a 99% Bulgarian majority. Carlos Tavares, the CEO who will lead the company, underlined that "the benefits of such an operation will be fully seen in the next ten or twenty years". Meanwhile, in the short term, 500 group executives are committed to achieving the goal of 3,7 billion in synergies. The terms of the marriage, "carefully considered", do not change. Any possible variation, however, "will be decided jointly".
TODAY THE YES OF FIAT SHAREHOLDERS. A HYBRID ENGINE FOR JEEP AND 500X
Today it's up to the FCA shareholders (+2%). After the go-ahead for the public guarantee on the 6,3 billion euro loan to the Italian subsidiary of Fiat Chrysler, the group has confirmed its investments in Italy, which will soon be joined by the development of the new GSE/MHEV (Mild Hybrid) engine module Termoli and related applications in Melfi on the Jeep Renegade and Compass and on the 500X.
CONSOB: OK TO INTESA'S OPS ON UBI
Consob has given the go-ahead to the draft offer and the information document relating to Intesa Sanpaolo's total offer offer on Ubi Banca. The first bank communicates it in a note, specifying that the period of participation in the public exchange offer (agreed with Borsa Italiana) will start at 8.30 on 6 July and end at 17.30 on 28 July.
SPREAD TO 178, TODAY THE SIX-MONTH BOT AUCTION
The BTPs are weak. The spread reached a maximum of 182 points and then closed at 178.
Yesterday the month-end Treasury auctions began with the Ctz (assigned to the lowest since February) and the new indexed Btp for 5,5 billion. Today it's the turn of the six-monthly Bot, traded yesterday at -0,2%, down from -0,012 in May. On June 30, 7,75 billion between 5 and 10-year BTPs and Ccteu will be offered. During the third quarter, the Treasury will offer a new 5-year BTP, a new 7-year BTP and a new CTZ.
BAD BANK MAKES MPS FLY, GOOGLE PUSHES NEXI
In Piazza Affari, the banking sector did well: fireworks on Mps (+6,13%) for which the launch of the bad bank takes shape. Even better is Popolare di Sondrio (+6,45%). But the plus sign also concerns Bpm (+2,26%) and Ubi (+2,13%) which participated in the Tltro3 auction for 12 billion. Intesa Sampaolo +1,08%.
Also in evidence is Nexi (+2,13%) in the wake of the agreement with Google for SmartPOS
FERRAGAMO POSTPONES THE HALF-YEAR TO SEPTEMBER
To follow today Salvatore Ferragamo, who has postponed the presentation of the complete half-yearly data and the conference call with analysts to 15 September, while the appointment of 28 July remains for revenues only, without the conference call. The decision to postpone the virtual meeting with the analysts is linked "to the desire to present the market with the data in their entirety and the actions already implemented in these difficult months".
BUY OF EQUITA FOR INWIT, ASSEMBLY WITH TIMVISION FOR LUCISANO
Inwit +0,95% after that Tim finalized the deal with an investor consortium led by Ardian to sell 49% of a vehicle to which 30,2% of the company will be transferred. Equita Sim confirmed the buy target rating of 10,6 euro on the stock.
Lucisano Media Group stands out in Aim (+5,04%), after signing licensing agreements with Timvision (41 films) and with Mubi (18 films).
