THE FED: RATES STILL UNTIL SEPTEMBER, EXCHANGES AT THE HIGHEST. SPOTLIGHT ON MPS IN MILAN. AND GREECE IS MORE SCARY
The US economy has lost momentum but will recover. However, a rate hike in June is premature. A cautious forecast on the US economy emerges from the minutes of the last meeting of the Federal Reserve: the weak dollar, we read, “will probably continue to be a brake on exports for a while. But the majority of the board doesn't fear too much the negative effect of the strong dollar and weak crude oil.
Thus the last uncertainty about the cost of money ends: we will talk about a first, modest result only starting from September. Wall Street, after reacting to the news with an increase, limited its earnings in the end; the Dow Jones closed at -0,15%, S&P -0,09%. The Nasdaq rose slightly +0,03%%. Yahoo +4,5% rebounds on the list: the split of the stake in Alibaba will take place, even if there will be a tax cost.
The Fed's minutes, combined with the good news coming from the economy, instead favored Tokyo's rise of +0,5%: the Nikkei index marks a new record since 2000. The other Asian markets were weaker. Shanghai rises +0,8%, despite the Cpi index signaling that the contraction of the economy continues. On the currency front, the euro weakens further: the currency trades at 1,1062 against the dollar (from 1,115).
BUSINESS PLACE +0,2%, EUROSTOXX AT MAY HIGH
Protected by the shield of the ECB, the European stock exchanges consolidated the progress achieved on Tuesday, despite the tensions over Greece. The European Stoxx 600 index +0,3% rises to the highs of the last three weeks. In Milan, the Ftse Mib index rose by 0,2%.
Paris +0,2%, Madrid +0,3%. Frankfurt unchanged. The Athens Stock Exchange falls by 0,7%. Meanwhile, the alarm signals for default are multiplying, now more probable than possible.
MOODY'S: ATHENS ATMS CLOSED SOON
According to Moody's, Greek citizens will soon find ATMs closed. “Impositions on the movement of capital and the freezing of deposits are very probable – reads a report from the rating agency”. Government spokesman Tsipras announced that, in the absence of aid from the EU, Athens will not be able to repay the loan to the IMF on 5 June.
Against this backdrop, there is considerable calm on the debt market: the yield on the ten-year BTP is equal to 1,85, up slightly on the eve (1,80%). The spread against the bund is 123 bp. Benoit Coeuré's statements in support of Qe are worth more than the Greek crisis.
MONTE PASCHI, TODAY THE PRICE. ABOUT BPM SHIELDS
Sales pressure continues on Monte Paschi -6,52% to 9,675 euros in view of the next capital increase. Today the board of directors will be held which will have to fix the offer price for the new securities. In the meantime, Axa, with a strong 3,7% stake, has confirmed its intention to participate in the operation. Davide Serra of Algebris, on the other hand, said he was not interested in subscribing to any unopted shares.
Instead, the rise of Bpm +1%, driven by the Fitch report, continues: the rating agency has lowered the rating on various bank stocks (Mps, Banco Popolare, Bper) but has not affected the rating on the institute in Piazza Meda . On positive ground both Intesa +0,2% and Unicredit +0,2%. Ubi +0,5%.
Minister Gian Carlo Padoan reiterated his intention to launch a vehicle "for the purchase of bank non-performing loans", reserved for performing banks.
AZIMUT, THE EMPLOYEES SHAREHOLDERS GET THE CASH
The worst blue chip is Azimut -5,01% at 27,32: the trust company Timone, representative of the employee-shareholder block union, sold 5,26% of the capital on Tuesday evening for 27,9 euros. The other asset management stocks were positive: Mediolanum +1,8%, Banca Generali +1,2%, Anima +0,9%.
TELECOM, YES TO AXIS WITH ENEL. 19% VOTE NO TO THE SALARY OF TOP MANAGERS
In Europe, the best sector was that of telecommunications (+1,6% the Stoxx index) on the wave of Altice's arrival in the USA. Few emotions at the Telecom Italia shareholders' meeting +0,8%. The only surprising note was the vote against the remuneration of top management by 19% of the share capital. The Recchi-Patuano couple, after denying the rumors of disagreements at the top, reopened the possibility of a collaboration with Metroweb and announced greater investments in FTTH technology. Still on the broadband front, the group intends to strengthen relations with Enel, an ally and not a competitor.
Mediaset +0,5%. Attention is growing for a pay TV agreement with Rupert Murdoch: it is a question of creating a company between the two groups in which to confer Premium. According to the hypothesis, Mediaset would be in the minority.
EXOR CLOSER TO PARTNER RE. THE DOLLAR RAISES STM
Positive day for the Agnelli team. Fiat Chrysler continues to advance +1,2% on the wave of good sales results. Meanwhile Exor advances +2,1%; the board of directors of Partner Re has decided to enter into talks with the Turin financial company to verify the possibility of an improved offer. In the industrial sector, the recovery of Stm +2,1% stands out, driving the recovery of dollar quotations.
LUXOTTICA TOWARDS A NEW RECORD. FEDON, A RECORD SMALL
In the luxury segment, the rebound of Tod's +1,2% stands out: Equita has raised its rating from veteran to Hold but lowered the target from 83 to 81 euros. Instead, the march towards a new record of Luxottica continues +1,07%, rewarded by the promotion of Morgan Stanley which reaffirmed the overweight opinion by raising the target price from 51 to 63 euros.
Among the small caps, the advance of the Veneto-based Giorgio Fedon stands out +9,85%, world leader in eyeglass cases: since April the price has almost tripled.
GOOD ENI AND ENEL, LEAP BY IGD
In the rest of the list it should be noted: Eni +0,3% and Saipem +0,4% are up. After five sessions of decline, oil rebounds: the WTI rises to 58,7 dollars (+1,2%), Brent to 64,6 dollars (+0,9%). Well for Enel +1,4%. The utilities are in negative territory: Snam -1,6%, Terna -1%. Atlantis also down -1,1%%. Great performance by Igd +6% after the Socgen report which raised the opinion on the stock from hold to buy.
