North Korea's missiles are flying again and the mad rush of Bitcoin does not stop, arriving this morning on the Asian markets at 10.400 dollars, with a 50% gain in just one month. At least in the East, one of the causes of the boom in virtual currency, an alternative to gold as a safe haven, is the uncertainty caused by the moves of Rocket Man, the nickname given to the dictator Kim by Donald Trump. Tonight Pyongyang tested a new missile capable of reaching Washington. Japan has requested the convening of the UN Security Council.
POWELL (FED) CONFIRMS: RATES RISE IN DECEMBER
However, Kim's initiatives do not obscure the financial news, which is of great importance today. The US Senate Budget Committee has given the green light to the tax reform bill. In the end, the two rebel Republican senators returned to their ranks, allowing the measure to continue its process: within two days it could be voted on by the hall.
Almost at the same time, the examination by the Banking Committees of Jerome Powell, the future president of the Fed, was completed, with great success. "He has said everything we wanted to hear him say" was the opinion of a senator at the end of the test. Powell argued that the market is ripe for another rate hike in December. Regarding the reduction of the Fed's balance sheet, the banker, in line with Janet Yellen, said that the goal is to drop from the current 4.200 billion to 2.500-3.000 "in 3-4 years". On the subject of banks, Powell argued that the framework of current rules is overall sufficient, therefore there will be no revolutions.
CHINA STOCKS DOWN, BUT TOKYO RISES
Meteo Borsa has already recorded the impact of the news. China's stock markets are down this morning, while rumors of government pressure on some friendly funds are chasing each other, called to stem an otherwise large and worrying bearish movement. The CSI 300 index of the Shanghai and Shenzhen stock markets lost 0,9%. Hong Kong -0,4%. Above all, high-tech companies and the semiconductor sector are down. Yesterday, Morgan Stanley cut the rating on two memory industry heavyweights: Samsung Electronics and Taiwan Semiconductor.
South Korea's stock market is flat, while the local currency, the won, strengthens against the dollar, reaching new highs in the last two years. The Tokyo Stock Exchange, on the other hand, follows in Wall Street's wake and rises, indifferent to the news of the North Korean ballistic missile that fell tonight in the waters of Japan. Nikkei index +0,3%.
US CONFIDENCE AT HIGHEST, JP MORGAN +3,5%
Effervescent Wall Street. The Dow Jones index rose 1,09%, S&P 500 +0,99%, Nasdaq +0,49%. The progress of the tax reform and Powell's hearing but also the increase in American consumer confidence, which rose to 129,5 points from 126,2 in October, to a 17-year high, contributed to giving momentum to the Bull. The data from the Conference Board is higher than the expectations of analysts, who were betting on 124 points. It was above all the banks and financial companies that stood out in the list. JP Morgan earned 3,5%
CRUDE CRUDE HOLDS DOWN, SHELL PUSHES EUROPEAN STOCKS
Oil prices slowing on the eve of the OPEC summit. More than waiting for the agreement between Russia and the cartel, the market is looking at new progress in the production of US shale oil (+1,8 million barrels in stocks) and at the reopening of the Keystone pipeline. Wti fell to 57,60 dollars, Brent to 63.17.
Despite the weakness of crude oil, the European oil & gas sector rose thanks to the rise of Royal Dutch Shell, which announced the end of the austerity policy on the dividend front. Eni +0,7%, Saipem + 1,7%.
AGREEMENT BETWEEN THE EU AND LONDON: THE STERLING RISES
The big news is about Brexit. On the eve of Theresa May's trip to Brussels, The Daily Telegraph he anticipates that an agreement has been reached between the EU and London on the financial terms of the separation: the divorce will cost London between 45 and 55 billion pounds on the basis of the recognition of theoretical liabilities for an amount around 100 billion. The pound reacted immediately, rising to 1,3336 against the dollar and to 0,886 from 0,898 yesterday against the euro. Yesterday the London Stock Exchange rose by 1,06%.
LISTINI, THE GAP BETWEEN EUROPE AND THE USA IS WIDENING
The eurozone stock exchanges recovered from the false start of the week, thanks to the slowdown in the euro, which fell from the highs for about two months reached in the last few sessions, trading below 1,19 to around 1,188.
However, the gap between European stock exchanges and Wall Street remains at its highest for eight years. Since the beginning of the year, the S&P500 index has gained 16%, the Stoxx 600 index which includes the 600 largest companies in Europe, has risen by only 7%. The former trades at an 18x P/E and the latter at 15x.
Piazza Affari ended the session up 0,52% at 22.291 points. Paris gained 0,63%. Frankfurt +0,44%: German import prices rose 2,6% year-on-year in October after +3% in September.
The OECD has revised upwards the estimates of growth in the Eurozone by the Organization for Economic Co-operation and Development. The OECD estimates +2,4% for this year, from +2,1% in September. Good with reservations too judgment on the Italian economy, which is expected to grow at a more than encouraging rate of 1,6% this year, to stabilize at 1,5% in 2018 and slow down slightly to 1,3% the following year.
BOT RATES AT THE LOWEST, TODAY AT AUCTION FOR XNUMX YEARS
In yesterday's Treasury auction, the six-monthly BOT rate reached a new all-time low of -0,436% from the previous -0,400% at the end of October. The Italian paper wiped out the morning's gains to close almost on parity, following the trend of eurozone government bonds. The yield differential between the BTP and the Bund on the 10-year segment stood at 144 basis points. The ten-year rate fell to 1,78%.
Today the month-end auctions will conclude in a particularly light edition - a maximum of 3,5 billion for the total offer - in the light of the fact that the objective set for funding by the Treasury has already been almost achieved. The MEF has canceled the reopening of the 5-year BTP but will make the 1,86-year BTP available to investors, whose yield is seen decreasing from XNUMX% at the end of October, and the Ccteu.
OXFORD LAUNCHES A BOND, THE ATHENS SWAP IS CONCLUDED
The University of Oxford plans to launch the first bond in its century-old history in the coming days, on the strength of a brand new triple-A rating. Founded in 1096, Oxford hired JP Morgan to raise at least £250m in an issue expected to last 100 years. Moody's gave Oxford an AAA rating ahead of the bond.
The possibility of joining the Greek 'swap' will soon end, in the context of which Athens proposes to the holders of 20 bonds cut in 2012 for a total value of around 30 billion to receive newly issued bonds with maturities of five, 10, 15, 17 and 25 years old.
BANKS RECOVERING BUT THE RISE OF MPS DEFLATES
Banking is recovering, in line with the rest of the continent: the Italian sector index rises by 0,5%, the European Stoxx by 0,38%.
UniCredit +1%. The bank sold 715 million euro of non-performing loans deriving from unsecured and mortgage credit agreements with customers in the small and medium-sized Italian business segment. Among the buyers there is also Mediobanca + 0,5%.
Monte dei Paschi Bank +0,5%, almost entirely swallowed up the important gains of the morning. For Goldman Sachs it is Neutral, target price 4,50 euros.
Weak Ubi after DBRS cut its long-term rating to 'BBB' from 'BBB' (high). Bpm bank + 1%. Intesa Sanpaolo + 0,3%.
Great volatility up Carige: -1,94% to 0,0101 euro, just above the issue price of the new shares (0,01 euro, 1 cent). By the end of the week, the decision on the sale of Creditis, examined yesterday by the Board of Directors. Setback also for Creval (-4%): the stock has almost halved its value since the announcement of the capital increase.
In asset management, FinecoBank+1%, moves on historical highs.
MEDIASET STARTS AGAIN THANKS TO SPAIN
Among the blue chips in evidence Mediaset (+2,16%). In addition to the expectations for a short-term agreement with Vivendi, the leap of has played in favor of the subsidiary of Fininvest Mediaset Espan approximately (+5%) after the promotion of Ubs a buy and the positive estimates on the trend in advertising sales.
Setback instead for Telecom Italy: -0,6%, against +0,33% of the European sector Stoxx. The braking on the separation of the network by CEO Amos Genish in Monday's meeting with the union was not appreciated. The number one of the group limited himself to reiterating that there are no regulatory reasons for separating the network, but without giving indications on the next steps.
ENEL PROMOTED, ACEA BOOM
Day of grace for utilities. More promotions for Enel (+1,5%). Banca IMI raised the target price from 5,8 to 6,2 euro, confirming the add recommendation. Analysts are talking about a solid strategy and dividend. HSBC then increased the target price from 5,4 to 5,8 euros, confirming the buy recommendation.
Slightly up too Terna (+0,2%): Citigroup confirmed the title among the top picks in the European utility sector with a buy rating and a target price of 5,6 euros. Italgas it rose by more than 2%, correcting the decline of the last two sessions. He runs Acea (+3,6%) after the announcement of the new industrial plan.
SMALL CAP IN THE SHOWCASE. DIGITAL BROS, LANDI RENZO, ELECTRA
In light Digital Bros: +6,8% to 11,78 euros. Banca Akros raised its rating to "buy" from "accumulated", target price at 14,50 euro. The net financial position is positive, with cash of 12 million euros, a better result than the company's expectations.
New leap forward by Landi renzo (+9,13%) in the wake of the merger of the subsidiary Safe with the company Clean Energy Compression, controlled by the American Clean Energy Fuels Corp. Banca Akros raised the target price to 1,25 from 1,1 euro (neutral) , while Equita Sim moved to 1,35 from 1,25 euro (hold).
Electra Investments +5,3%. The company raised its 2017 targets in the light of the results of the first ten months of the year. The holding company active in the production of electricity and heat and in energy efficiency is up 90% since the beginning of the year.
Digitouch +3% on the day of presentation of the plan targets. The company, active in digital marketing on mobile devices, aims to double its turnover by 2020, reaching 52-53 million from the 27-28 million expected for this year, and to obtain an Ebitda of 8,1-8,4 million from the 4,3-4,5 expected in 2017.
Cti Biopharma drops by more than 4% after the announcement of the delisting from Piazza Affari.
