Other than dove. Janet Yellen last night he extinguished the enthusiasm of Wall Street with a hawkish tone. The Fed, as expected, will continue tapering, reducing purchases from 65 to 55 billion dollars a month and confirmed the 0-0,25% target for the cost of borrowing (effective since 2008) of 0-0,25 .6,5% for the Fed Funds but has changed the objectives: the new targets are based on full employment (no longer the 2% unemployment threshold) and inflation at 2,5% (against the previous XNUMX) .
But two new things emerged from the press conference: "Bear" impressed the markets:
1) the Fed believes that the US economy is now capable of supporting the recovery of the labor market.
2) interest rates could thus begin to rise again in mid-2015 (and not at the end, as mentioned so far). The "considerable period" of time that will have to elapse between the end of quantitative easing, ie the purchase of securities on the market and the recovery of rates, should be, Yellen said, only six months.
After the Fed president's press conference, US stocks took the downward path: Dow Jones-0,70 .%, S&P -0,61% Nasdaq -0,59%. The repercussions on the dollar were immediate, recovering against the yen (102.40) and the euro (1,3826) and on the yield on T bonds, which rose to 2,76% (+9 bps). Gold drops to $1,330 an ounce.
ASIA HOLDS BACK, OPERATORS FLIGHT FROM JAPAN
The recovery of the US currency has partly curbed the decline in Tokyo just under two percentage points. All Asian stocks are down, starting with Hong Kong -1,7%, which is also weighed down by fears about the health of the Chinese economy. However, Shanghai is holding on, pending an injection of liquidity from the central bank. Foreign investors report having doubts about Abenomics: last week there were sales of shares from abroad for 10,7 billion dollars. The forecasts predict a downward start also for the European lists, yesterday in prudent expectation of the decisions of the Federal Reserve.
In Milan the FtseMib index fell by 0,2%. London lost 0,4%, Paris -0,1%. Frankfurt and Madrid did better +0,3%, supported by corporate results. The Automotive sector (Stoxx +0,8%) was driven by the very strong leap of the German BMW +7,5%, which announced its forecast of a strong increase in profits in 2014. In retail, however, the star of the Spanish Inditex shone , one of the world's clothing giants (Zara), gained 4,4% after the presentation of 2013 data.
BTP, A NEW 15 YEAR IS COMING SOON. ATHENS RETURNS TO THE MARKET
The Btp-Bund spread closed stable at 179 basis points with the 10-year Treasury yield at 3,39%. The differential between Spanish and German ten-year bonds ends unchanged at 173 basis points with the Bonos rate at 3,33%. Meanwhile, new signs of stabilization from the euro area. The Italian Treasury is evaluating the launch of a new 15-year BTP, anticipates Reuters citing market sources. The operation is part of the strategy of lengthening the average life of the debt, which fell at the end of 2013 to around 6,4 years from 7,2 at the end of 2010, before the 2011 crisis. Greece, on the other hand, intends to launch a test test with an issue of a five-year bond of 1,5-2 billion euros in the first half of this year. Athens has been absent from the capital market for four years of exclusion.
TELECOM, IN VIEW OF THE RECCHI-GAMBERALE DUEL
There will be battle over the presidency of Telecom Italia -1,07% among Telcos (22,4% of the capital) which proposes the president of ENI Giuseppe Recchi and Marco Fossati's Findim (5% but capable of aggregating 23% in the meeting of 20 December last) lined up in favor of Vito Gamberale. And it will be the funds that will make the difference at the time of the count on April 16th. An agreement on the chairman was not reached because, according to Findim, the recommendations of the Telecom board of directors of February 27 (which asked that the chairman be chosen from among the independents) addressed the change in corporate governance in an "insufficient" manner.
Il board of Telco yesterday he chose the team captained by Recchi (“excellent choice” said the CEO of Intesa Carlo Messina). There will be the CEO of Terna, Flavio Cattaneo, and the British MP Baroness Denise Kingsmill as well as Marco Patuano, the honorary president of L'Oreal Italia Giorgina Gallo, the managing director of Cartasì Laura Cioli, the former RCS Giorgio Valerio , and the CEO of Zignago, Luca Marzotto. Among the few reconfirmations, in addition to Patuano, Tarak Ben Ammar and Jean Paul Fitoussi. Also on the list are Elena Vasco, Paolo Fumagalli Maurizio Dattilo. The last three names, however, will probably not enter the board, to make room for the names of the minority lists.
La Findim by Marco Fossati cVito Gamberale instead went to the presidency of Telecom. The list does not include Fossati himself but proposes the appointment of Girolamo Di Genova (in Telecom for 30 years until 1998, Co-General Manager and head of business customers) and the president of Asati, Franco Lombardi.
BANKS, S&P HOLDS BACK POP. MILAN
Still major movements in the credit construction site. Mps down -2,03% with sustained volumes, after the sale of 12% of the Foundation's shares. On the stock, Equita Sim has raised the recommendation from hold to buy, with the target price revised from 0,2 to 0,31 euro. Instead, another Tuscan bank takes off: Pop Etruria rises by about 6% after yesterday the president of Pop Vicenza, Gianni Zonin, said that by the end of the month he will make a binding offer for the Arezzo bank. In the main list, Intesa stands out (+1%) while the wait is rising for the presentation of the business plan on 28 March. CEO Carlo Messina said the bank does not need to clean up its balance sheet.
Ubi up 1,17%. Without significant points, Banca Popolare di Milano +0,3% after CEO Giuseppe Castagna said that there is no decision to introduce the governance changes, also for the CDG, at its expiry and therefore in 2017. A novelty that makes participation in the increase in the funds led by Raffaele Mincione less likely. In the evening, Standard & Poor's issued the institution, for which it has a long-term rating of BB- and a short-term rating of B, on a negative creditwatch. This is what we read in a note. The decision is motivated by the "uncertainties surrounding a credible governance reform and the 500 million euro capital increase".
THE SNAM PLAN DOES NOT HEAT THE BUSINESS PLACE
Great holding of Enel (+0,4%) which recovered all the initial losses in the afternoon (it had reached a low of 4,022 euros) to close up by 0,4% at 4,10 euros, one step away from the highs since July 2011 marked yesterday at 4,114 euros. Deutsche Bank has raised the target price to 4,2 euros from 3,2 euros, the judgment remains Hold. Snam is down, after the announcement of the main strategic lines up to 2017 and the start of negotiations for the acquisition of CDP's stake in Tag. -0,7% through a capital increase. The dividend, underlined CEO Carlo Malacarne, "is among the best in the sphere of European utilities".
PIRELLI UNDER FIRE, MANY OFFERS FOR FINMECCANICA TRANSPORT
Finmeccanica +0,50%. The Treasury and the Ministry of Economic Development share the strategic plan approved by the Finmeccanica board of directors which provides for the deconsolidation of Ansaldo Breda. Among the suitors for Ansaldo Sts and Ansaldo Breda are Thales and Bombardier as well as the Chinese of China Cnr Corporation and Insigma. Yesterday the board of directors of the group, on whose table the expressions of interest landed, decided to move on to the operational phase in order to define a transfer operation with one of the interlocutors in the field.
The decline of Pirelli continued (-2,11%) after the agreement with the Russians of Rosneft, which removes the speculative appeal of the stock, linked to possible M&A operations, which brought the prices above 12 euros. Buzzi lost 1,9%.
MANY BUYS FOR MADE IN ITALY FOOD
It's food time. In evidence Marr, after Mediobanca Securities raised the rating on the stock from neutral to outperform, with a target price that went from 11,4 to 15,4 euro and the latter brought the target price from 13 to 15,53 euro, confirming the recommendation add. Tamburi Investment Partners, the merchant bank that has just entered Eataly, gained 2,1% to 2,58 euros. Consob communications on significant equity investments show that Carlo Alberto Marsiletti has acquired 2,026%. La Doria, a leading group in the production of tomato-based products, legumes and fruit juices and drinks with large-scale retail brands ("private labels"), closed up 1,8% at 6,22 euros after the broker's promotion British Edison Investment Research which raised the target price to 7,80 euros, with an upside (potential for appreciation) of 29%.
