Sixth consecutive rise for the S&P index +0,41, just two tenths from the new record. The Dow Jones was positive, +0,40, the Nasdaq shines +0,97%. The wave of M&As is giving the market impetus, among which the pharma sector stands out, reaching 140 billion since the beginning of the year, preceded only by telecommunications and tech. Tokyo opened up 0,64% this morning. From China, the HSBC/Markit flash PMI (purchasing managers index) figure for April rose to 48,3 points from the final March reading of 48, but still below the 50-point threshold that separates the contraction from the expansion phase. The data is overall in line with expectations but does not help the sentiments of the Asian markets which open higher in the wake of the US session and then cancel the gains in the wake of the data on industrial activity. Shanghai lost 0,24% and Hans Seng 0,85%.
In anticipation of the most eagerly awaited quarterly results, the financial markets have been filled with stimulants. In fact, the fever of big business has exploded in the pharma sector. After the announcement, at Easter, of the failed deal for the purchase by Pfizer of Astra Zeneca (yesterday, however, the rise of 5%) for 101 billion dollars, a real M&A storm was unleashed. The American Valeant, allied with William Ackman's hedge fund (an unprecedented pairing in the drug world), has launched a 49 billion dollar offer on Allergan, the Botox company. Novartis' strategy is even more effervescent: on the same day it sells the animal medicine division to Ely Lilli (5,4 billion) it sells vaccines to Glaxo Smithkline (7,1 billion) but buys anticancer drugs from the British group (16 billion). Finally Novartis and Glaxo bring together the over-the-counter divisions with products of the caliber of Maalox, Nicorette and Aquafresh.
The fever for pharma has also favored the European markets. In London Glaxo rose by 5,2% ahead of Astra Zeneca. The most brilliant list, however, is Frankfurt +2,02% followed by Madrid +1,41 and Paris +1,14%. Piazza Affari +1,49% closes at a whisker with a share of 22 driven by banks and luxury goods. The sovereign debt market is always positive. The Btp/Bund spread is reduced to 155 basis points. The 3,10-year yield is at 3,07% slightly worse than the Bonos XNUMX%.
The best stock on Piazza Affari was Telecom Italia +4,03%. The market appreciated, with a slight delay linked to the holidays, the results of the meeting which appointed Giuseppe Recchi to the presidency with a direct vote of the shareholders. The company is now on its way to full contestability. The news that Numericalbe, to finance the purchase of Sfr, is about to promote an offer of junk bonds for 8,5 billion, confirms the ferment in the European telecommunications sector.
Fiat did very well +3,5% on the wave of the agreement with its Chinese partner for the production of jeeps in the East. In the meantime, expectations are rising for the industrial plan which will be presented in Detroit on May 6th. Great day for the banks too. The market welcomed the four-way agreement between Unicredit +2,6%, Intesa +2,3% and the Americans Kkr and Alvarez Marsal for the bad bank. After a difficult start, Mps also gained share +2,19%.
Finally, the fever of M&A invests luxury: the news that Roberto Cavalli is in Permira's sights has sparked attention on Italian stocks on the verge of a merger: Yoox +3,3% flies, Brunello Cucinelli +4,02 does even better, XNUMX%. Ferragamo, on the other hand, remains unchanged.
