The slowdown in US GDP is "only temporary". Consumption growth was "modest" but the fundamentals remain "solid". In short, the Federal Reserve's analysis does not change: rates remain unchanged for now, but a hike is likely, the second of 2017, at the meeting of 13-14 June. This, in summary, is the message arriving from the Central Bank, entrusted only to the final statement because, as expected, there was no Janet Yellen's press conference.
“The keystone for the next few weeks will be the economic data from the United States – comments Lee Ferridge of State Street – but the Fomc will also have to carefully observe Washington and the negotiations concerning the plans for tax reduction by the new administration. If the data stays flat (or better yet improves), and the chances of a late-summer tax cut deal remain intact, then the market should likely factor a June move into valuations.
WEAK APPLE ALSO BRAKES STM
Wall Street took note of the Central Bank's decisions without much reaction. The Dow Jones index is flat (+0,01%), the S&P 500 (-0,21%) and the Nasdaq (-0,5%) are down. The weakness of the Apple stock continues (-0,4%), which also recovered during the session. Weighing the disappointment for the unexpected drop in sales of i Phone (-1% to 50,8 million pieces). The effect was felt by all Apple suppliers, including Stm (-1,8%). German Semi Dialog dropped 5,8%.
TWO BILLION USERS FOR FACEBOOK (-1,7%)
Facebook also beat analysts' estimates but dropped by 1,7% from the all-time highs reached before the results ($153,60). Mark Zuckerberg's giant announced earnings per share of 1,04 dollars (+73%) against a forecast of 0,83 dollars. Revenues (7,8 billion) and advertising (+85%) also beat estimates. Active users are now close to 2 billion. Facebook, up 30% in 2017, announced it will no longer report earnings per share starting next quarter.
NEW YORK TIMES FULLY SAILING (+12,5%), TRUMP LIKES WAR
The battle against Donald Trump of the New York Times, fiercely hostile to the president, turned out to be an excellent deal: the stock rose 12,5% yesterday after the publication of the accounts of the "Grey Lady", the only one to have profited from the first 100 days of the President.
Delphi's boom (+9,3%) is still worth mentioning. The auto parts supplier has announced the spin off of the division that produces combustion engines mounted on traditional cars. From now on Delphi will focus on hybrids and self-driving cars.
DOWN THE OILS. TENARIS -1%
Oil prices showed little change: WTI crude at 47,65 dollars (-1 cent), Brent at 50,60 dollars a barrel (+14 cents). US inventories are down slightly but demand for gasoline from American consumers is down.
Oil stocks are weak in Piazza Affari. Tenaris loses 1%, after Goldman Sachs lowered its target price to 15 euros from 15,6 euros (Neutral recommendation). Saipem rises by 0,7%. Eni – 0,4%.
CHINESE HNA BUYS 10% OF DEUTSCHE BANK
Asian stock exchanges are mixed. Seoul's Kospi index gains 0,6% and reaches its highest level since 2011. Mumbai +0,5%. Hong Kong's Hang Seng index fell by 0,5%. The Tokyo Stock Exchange is closed for Golden Week.
The Chinese conglomerate HNA has become the number one shareholder of Deusche Bank with a stake of about 9,9%% accumulated over the last 28 months with an investment of cit 40 billion. To rise above the 10% threshold, the Chinese group will have to ask for authorization from the German authorities. But Hna has already made it known that it will stop below the threshold. However, the group makes no secret of wanting to aim for the purchase of Hamburg's HSH Nirdbank, the institution in dire straits that Berlin has so far helped with interventions precluded by the bail-in principle.
MACRON WINS THE TV DUEL WITH MARIE LE PEN
Hard hand-to-hand between Emmanuel Macron and Marie Le Pen last night in the second and last TV debate before Sunday's vote. The Front National candidate attacked on all fronts, from terrorism to "subjection" to the European Union, accusing Macron of "still being a banker". Macron, calm, retaliated blow for blow. At the end of the polls, the En Marche candidate was rewarded: Macron's advantage rose to 63%.
European stock markets moved little yesterday in anticipation of the duel between the French candidates and Janet Yellen's press conference. Theresa May left the scene moving, who, following a meeting with her Queen, accused former friends of the EU of wanting to influence the British elections, complicating the path of Brexit. “Some have created the illusion that Brexit will not materially impact our lives or that negotiations will be concluded quickly and painlessly. This is not the case”, retorted the chief European negotiator Michel Barnier.
RECOVER BTPs AND THE REST OF THE “PERIPHERY”
Piazza Affari was almost flat, with the Ftse Mib index which closed up by 0,13% at 20.759 points. The other price lists are also flat: Paris unchanged, Frankfurt +0,1%. Madrid +0,15%. London closed down 0,2%. The GDP figure for the first quarter of the euro area was positive, up 1,7% over the same period in 2016, in line with expectations.
The Btp are well tuned, which in the end have caught up with the German card. The ECB statistics could also partially support the narrowing of the spreads, which highlight how in April Qe purchases exceeded the "capital key" coefficient - the share of individual countries in the capital of the central bank - in the case of French and Italian government bonds.
Starting at 196 from 198 basis points at Tuesday's closing, the yield premium between the ten-year BTP and the equivalent Bund closed at 194 basis points. The German 2,432-year bond was placed at auction for 0,33 billion euros at an average rate of 0,21% from XNUMX% in mid-April.
TELECOM ITALIA BEATS EXPECTATIONS
Telecom Italia -0,3% awaiting the quarterly accounts announced in the evening. Telecom's first quarter beats consensus estimates and receives the positive assessments of analysts. Revenues grow by 8,5%, the ebitda by 16% to 2 billion. The Brazilian division is also recovering. Net income drops to 200 from 433 million in 2016, which benefited from extraordinary items. Adjusted net debt stands at 25,235 billion. The CEO Flavio Cattaneo predicts that domestic revenues will "grow again in the next quarter". The company, he added, is ready to face Iliad with Kena and Tim brands, therefore it does not change the guidance on the 2017 ebitda.
LEONARDO'S PROFIT ALSO RISES
Leonardo's accounts also came out on a closed stock market (-1,2%). In the first quarter of 2017, the group recorded a net result of 78 million, an increase of 21,9% compared to the 64 million of the 2016 consideration (which had benefited from the capital gain from the sale of Fata). At an ordinary level, net income increased by 39,3 percent. Ebitta grew by 14% (to 187 million) and by 15,7% (to 155 million). Revenues decreased by 2,4% (to 2,476 billion). New orders rose by 3%, to 2,647 billion, with a backlog that stood at 34,8 billion (+25% compared to March 2016). Group net debt fell to 3,3 billion (-22,7% compared to March 2016), a clear improvement due to the collection of the second advance on the EFA Kuwait contract. The company confirms the guidance for the 2017 financial year.
UNICREDIT AT THE TOP IN EUROPE
Brilliant performance by Unicredit, which strengthened yesterday in the final up by 2% to 15,42 euros. Allianz announced yesterday that it had subscribed to the capital increase of the bank led by Jean Paul Mustier, the best banking stock in the Eurostoxx Banks index, itself gaining 0,7%, and the best blue chip in Piazza Affari. Intesa (+0,5%) and Banco Bpm (+2%) were also positive.
Among industrialists, Fiat Chrysler recovered (-1,1%), after yesterday's -4% caused by the weak data on car sales in the US in April. In the red Cnh Industrial (-1,9%) and Prysmian.
THUD OF MEDIASET AND TECHNOGYM
Thud of Mediaset (-2,2%). According to Corriere della Sera, Vivendi is thinking of selling shares in Berlusconi's group to comply with the request from the Communications Authority to put an end to the interweaving between the world of the media and the world of telecommunications.
Moncler set the fifth historical record in a row, pushing the price up to 23,20 euros in the final. Technogym slip (-6,01%) after the accounts. Banca Akros, among others, downgraded its rating to neutral from accumulated in light of the limited upside after the recent share performance. Equita, on the other hand, raised the target to 7,4 euros (buy unchanged).
