"The German economy lacks momentum," Clemens Fuest, president of Ifo, the institute that measures Germany's economic index, said this morning. Confirming the slowdown, the heaviest in four and a half years, was the morning data on manufacturing activity across the Rhine, which contracted in May with repercussions for the entire common currency area. Despite progress in the services sector, says Chris Williamson of IHS Markit, "the eurozone economy stagnated in May, suggesting only modest growth of around 0,2% of gross domestic product will be recorded in the second quarter ”.
In the wake of this news, European stock markets slip into the red. At 13 pm, the FtseMib index in Milan was down by 1,6% to 20.244 points, on the lows of the last two and a half months, in line with Paris -1,7%. The German price list suffers even more -1,8%. London falls by 1,4%: the pound, down against the euro for 14 days, fluctuates close to 4-month lows after the resignation of a member of the May government and leader of the House of Commons, Andrea Leadsom, a supporter of primo Brexit plan. The euro weakens instead to 1,113 against the dollar, -0,1%.
The 0,10-year Bund trades at -0,09%, from -274% yesterday. The spread rose accordingly to 273 (from 2,63). The yield of the XNUMX-year BTP is unchanged at XNUMX%.
Brent oil down 0,8% to 70,4 dollars a barrel. There will be no truce in Libya for the moment, Commander Haftar told French President Macron.
Oil stocks are down sharply: Eni -2,3%. Côte d'Ivoire awarded two offshore blocks to the group. Tenaris -3,5%. Saipem falls by 3,5%.
In Piazza Affari, the title holds the court Juventus +3,2% up sharply again today after the rumors about thearrival of Pep Guardiola as coach.
The automotive industry suffers. The Nikkei Times reports that the US-Japan trade talks got off to a bad start: the two sides are "far apart". Tokyo calls for the lifting of the duties imposed today on cars (2,5%), trucks (25%) and motorcycles (2,4%). Washington doesn't even think about it, on the contrary, it could raise those on cars to 25%. A decision on the matter was delayed last week by 180 days.
In deep red Fiat Chrysler -2,7%. The company will invest 4 billion dollars (3,6 billion euros) by 2024 to support the launch of new Fiat-branded vehicles (13% market share in Brazil), of which 500 million dollars for the expansion of production capacity from 250 to 350 units at the Goiana plant (Pernambuco), dedicated to the Jeep. Also bad for Pirelli -2,7%.
Weak banks. Intesa Sanpaolo -1,8%. Reuters has released some indiscretions on the ongoing negotiations on problematic loans with Prelios: the parties are agreeing on a direct sale of 5 billion euro of probable defaults to Prelios, plus another five to be managed.
Also Unicredit -0,8% has initiated, according to Bloomberg, the process for the sale of five billion euros of non-performing loans, in addition to the 2,4 billion euros of non-performing loans already placed on the market.
The League is ready to intervene with public money to save Carige from the crisis that brought it into extraordinary administration at the beginning of the year. This was stated by the deputy premier and leader of the League Matteo Salvini in an interview with Il Secolo XIX.
Even today the most solid sector is represented by utilities. Enel completed the refinancing of part of the portfolio of hybrid subordinated non-convertible bonds, through a voluntary non-binding exchange offer for the repurchase of hybrid bonds maturing on 15 January 2075 and 10 January 2074. Italgas goes up +0,2%.
Outside the main basket:
- nexi +0,3%. HSBC, Goldman Sachs, Barclays and Mediobanca are starting today to cover the stock with a purchase recommendation.
- Maire Tecnimont +3%, announces this morning that it has received a series of orders, with a total value of 700 million dollars.
- Inwit +3%. Citi raises the target price to 9 euros, from 6,4 euros, takes the judgment to Buy.
- sapphire -1%, proceeded with the expected repayment of the 2014-2019 Equity Linked bond loan of 150 million.
