Bless the pandemic. Google's boom in the months of the closure has displaced even the most optimistic of Wall Street operators: Alphabet, the parent company of the search engine, has announced incredible turnover and profits. Revenue jumped 30% to $32 billion. The total, including YouTube and everything else the company offers, is up 34% to $55,3 billion, much better than expected. Net income exploded (+163%) to $17,9 billion. Strengthened by this result, the company has allocated 50 billion dollars for the repurchase of its shares. The stock gained 5% after the Stock Exchange.
In anticipation of tonight's Fed press conference and President Biden's almost simultaneous speech (new tax signals expected), Wall Street is focused on the state of health of its giants at the end of the lockdown season. Between today and tomorrow the numbers of Apple, Amazon and Facebook arrive. They are welcomed by a healthy market, fueled by American confidence, at its highest level in 14 months. But it is a demanding market, which is not satisfied: Microsoft, thanks to the cloud, only slightly beats the previous estimates, and the stock falls by 4%. Tesla -4,5%: he doesn't like the fact that profits, although on the rise, derive more from credits to pollute and from capital gains on Bitcoins than from car sales.
CHINESE POPULATION DOWN: HAVEN'T HAPPENED SINCE 1949
It is worth focusing on the accounts of Corporate America, even if the US indices closed practically flat. The situation on the other squares is no different, however close to the maximum. The Dow Asia Pacific index is unchanged, with some modest gains for the stock markets of Australia and Japan, while those of China are slow.
According to the Financial Times, the Chinese government is preparing to announce the first drop in its population since 1949, below the threshold of 1,4 billion people. Beijing reportedly postponed the announcement of the results of the latest census by several weeks.
The heirs of Lee, the president of Samsung who died in October, have agreed on the record amount of the inheritance tax: 10,8 billion dollars to be paid over five years, including the sale of the rich art collection.
MUMBAI RISES DESPITE COVID-19 EXPLODES
Expectations of a strong acceleration of the economy overshadow the health emergency underway in India: yesterday there were another 362 new infections and there is a serious lack of oxygen in hospitals. But Mumbai's BSE Sensex index is up 0,7%. The Asian Development Bank, in the bulletin released a few hours ago, estimates GDP growth of 11% for India. The same subject forecasts an increase of 7,3% for Asia, with +8,1% for China.
COPPER BOOM, A DIGITAL BOND ON THE BLOCKCHAIN
Thus continues the race of copper, which has risen beyond the threshold of 10 dollars a ton.
It should be noted that, according to Bloomberg, the European Investment Bank is preparing to place a digital bond for 100 million euros on the Ethereum blokchain.
WTI oil trades at $63 a barrel. Brent at 66,36. Gold down 0,3% to $1.771.
THE NEXT GENERATION EU AT THE START: FRANCE AND GERMANY TOGETHER
In Europe it was a day dedicated to fine-tuning the Next Generation Eu plans. The largest is that of Italy (248 billion). The finance ministers of France and Germany, Bruno Le Maire and Olaf Scholz, jointly presented their recovery plans. Germany, which will receive around 28 billion, plans to use 90% of the resources on projects for sustainability and digitization. In Spain too, the government has approved the national recovery plan and is preparing to send it to the Commission.
THE MISSION OF DRAGONS STARTS. THE ECONOMIST: HE IS NOT THE MESSIAH
In the Pnrr plan, said Mario Draghi, "there is the destiny of the country", its "role in the international community", the credibility and reputation as a founding country of the EU and a protagonist of the Western world. "It is therefore not only a question of income, work, well-being, but also of civil values, of feelings of our national community that no number, no table can ever represent". But there are the numbers listed by Draghi to remind us how difficult the challenge is: in twenty years, from 1999 to 2019, the Italian GDP grew by 7,9%, against 30,2% of the German one and even 40% than the Spanish one. Cruel numbers, which lead directly to the problem that has been holding back the Italian economy for some time: low productivity, which has fallen by 6 percentage points. A disaster. Yet it is worth trying, not only for the good of Italy, but of the entire EU. Everyone agrees, but theEconomist warns: Draghi is not the man of Providence.
WEAK EXCHANGES: MILAN -0,17%
Little movement in Piazza Affari (-0,17% at 24.373 points), awaiting the decisions of the Fed.
The other markets are in line: Frankfurt loses 0,19%, Amsterdam -0,45%. Madrid moves against the trend: +0,5%.
GINEVRA ELKANN LEAVES THE BOARD OF KERING: CONFLICT OF INTEREST
Paris -0,03%. Of note is the resignation of Geneva Elkann from the board of Kering (Gucci). The decision, explains a note from the French house, is aimed at "avoiding any potential conflict of interest" with Exor, now a protagonist in the world of luxury.
BP, PROFIT AND BUY BACK START AGAIN
London -0,28%. BP jumped 0,8% after reporting a $2,6 billion first-quarter earnings boost on firmer oil prices, and strong natural gas trading revenues. The buyback starts again. HSBC +1,8% after jump in profit.
UBS ALSO PAYS THE BILL FOR THE ARCHEGOS CRACK
Zurich -0,63%. Ubs -2,7%, to 11-week lows, after announcing costs of 774 million euros deriving from the default of Archegos, which overshadowed a better-than-expected increase in first-quarter profit of 14%.
THE TREASURY PLACES $3,5 BILLION
Warm welcome for the new dollar Btp placed yesterday by the Italian Treasury. The issue was for a total of 3,5 billion, divided into two tranches: one with three years (2 billion) and the other with thirty years (1,5 billion).
The 0,83-year rate reached a new high since the end of September, reaching the threshold of 109%, while the spread on the Bund on the same stretch rose to XNUMX points, the highest since the beginning of February.
TODAY THE SIX-MONTH BOT AUCTION
The placement of the semi-annual Bot is scheduled for today. The yield on the bond maturing in October 2021 settled at around -0,48%, closing on the Mts gray market, not far from the -0,486% of the auction at the end of March, when it reached its lowest since December.
GENERALI, CALTAGIRONE DOES NOT DEPOSIT THE SHARES FOR THE SHAREHOLDERS' MEETING
A delicate front opens up for the balance of the financial system. In a surprise move, Francesco Gaetano Caltagirone, second shareholder and senior vice president of Generali with a stake above 5%, has decided not to deposit his shares in view of the meeting to be held tomorrow by videoconference in Trieste.
The tear, disclosed by Republic, it is sensational: barring last-minute surprises (the shares can be deposited until before the meeting), Caltagirone will be seen as a shareholder not to vote for the approval of the 2020 budget which he himself, as a director, instead approved in the Board . If it is not an explicit distrust for the work of the managing director Philippe Donnet, which Caltagirone has been aiming to change for some time, it looks a lot like him.
BANKS, MEDIASET AND STM SUPPORT PIAZZA AFFARI
Banks are in positive territory after a disappointing start. Unicredit (+1,4%) is the strongest, followed by Fineco (+1,22%) and Banco Bpm (+1,06%). Understanding +0,5%. Reverses Bper, down by 0,7%.
In the spotlight Mediaset (+1,2%) after the decision to move the registered office to the Netherlands to facilitate the group's international expansion. The company has also decided to ask the shareholders for the green light to repeal the increased vote. In 2020, EBIT was positive for 269,7 million, but down from 354,6 million in 2019, while net profit dropped to 139,3 million from 190,3 million euros.
Stm also rises (+0,6%) two days after the accounts. Supporting the attention were the accounts of NXP, the Dutch competitor of STM listed on the Nasdaq, which reported first quarter results that showed strong revenue growth (+27%) and expanding margins (gross margin at 54,2. XNUMX%).
DIASORIN COLLAPSES: DEMAND FOR TESTS IN THE USA DROP
Conversely, Diasorin (-5%) was crippled by French competitor Biomerieux's downward revision of its forecasts for the year amid falling demand for CFovid-19 tests.
IN ROSSO PIRELLI, SALES ON LEONARDO AGAIN
Negative wind from France also for Pirelli (-1,67%) held back by Michelin's accounts.
The shower of sales on Leonardo continues: -1,65% after the acquisition of 25,1% of the German Hensoldt for 660 million euros. JP Morgan cut the recommendation to “Equal-Weight” from “Overweight” with a target price of €7,1 from the previous €8,3.
Tod's was also down sharply (-3,6%), due to profit taking after the rally following the entry of Lvmh (and Chiara Ferragni).
ATLANTIA: ONE MORE POSTPONEMENT FOR ASPI
Down at Atlantia (-1,17%). The Cdp Board of Directors on Monday did not take any decision regarding the Aspi dossier. It is probable that a final decision will be made in the Board meeting on April 29th.
TIM RISES, PRYSMIAN RUNS
Good instead Tim, +0,88%. The Cdp board will meet on the Open Fiber dossier later in the week, explained a source close to the situation to Reuters, to evaluate the methods that should lead the Cassa to raise more than 50% of the TLC group by acquiring a portion of the share of Enel, which is in turn negotiating to sell the bulk of its stake to the Macquarie fund. Prismian +1,56%.
SAIPEM IN RED ON THE EVE OF ACCOUNTS
In the oil sector, a sharp decline for Saipem (-2,66%) on the eve of the results for the first quarter on the calendar. Tenaris -2,09%.
AMM, TENDER OFFER COMING AT AIM
Among the mid caps, Sanlorenzo shone (+2,12%, at 21,7 euros): to push the share Kepler Cheuvreux, who raised the target price from 25 to 28,4 euros, confirming the buy recommendation. The AMM share soars on Aim (+17,41% to 2,36 euro) after the announcement of the sale to Link Mobility group of 80% of the share capital and consequent launch of the total takeover bid.
