Woe to considering the golden age of technology for over. Of course, the markets are more attentive to the cost of debt, as required by new look of the Fed. But much more is needed to curb the digital transformation of the economy and of society itself, which emerges from the accounts of Silicon Valley. The accounts of A (formerly Google) have confirmed the overwhelming power of this formidable war machine in advertising: 74 billion dollars in revenues in the fourth quarter (+32%), accompanied by a gift to shareholders: the split of each stock into 20 new shares, one novelty that will encourage purchases and that has thrilled Wall Street: after the Stock Exchange, the stock has achieved an increase of 8%. The company has thus overcome the barrier of 2 trillion in value. Today the answer will come from two other digital champions, Meta (formerly Facebook) and Amazon.
The long wave of Silicon Valley and the comeback of the oil giants are largely offsetting the declines triggered by the decisions announced by the Fed. Risk appetite is picking up both in Europe and in Asian stock exchanges active in the week of the Chinese New Year. Bonds settle, the dollar slows down. Barring nasty surprises from the Ukrainian front, the slowdown at the beginning of the year could be behind us.
Futures on the Eurostoxx 50 and on the Nasdaq are up by one percentage point. Stock exchanges in the East are positive: Nikkei of Tokyo + 1,7% Sidney + 1% Jakarta Composite +1%. Bse Sensex of Mumbai + 1%. China closed for holidays.
Closing with the plus sign for i American lists: Dow Jones +0,78%. S&P +0,69. The Nasdaq recovers 0,75%.
Crolla PayPal: -14% after the stock exchange despite data in line with forecasts. The company presented not entirely positive indications for 2022, partly because the effects of eBay's choice to have its own payment system emerge, partly because the high cost of living is penalizing low-income categories more.
Vola Exxon Mobil: +6,4% after the best result in the last seven years.
Il Treasury Notes ten-year trades at 1,79%. Two macro data to think about: 10,9 million Americans quit their jobs in December; US public debt has crossed the threshold of 30 trillion dollars.
Petroleum Brent and WTI up 0,3%. Today OPEC+ is expected to confirm the production increase plan, the fixed roadmap forecasts growth of 0,4 million barrels per day.
The Bull is running in Europe: perhaps two rate hikes in 2022
The rally of the European markets continues, and they are heading towards tomorrow's appointment with the ECB directorate. The acceleration of manufacturing production in the euro area (Pmi index at 58 points) contributes to favoring the bull run. Italian industry is also up for the nineteenth month in a row, but the temperature has dropped a bit: the index in January is 58,3, down compared to 62 in December, in any case well above the border with the recession (at 50). But in the sub-index on orders, which has dropped to 57 from 63, fears related to the resurgence of infections and high energy prices are being felt.
Turning to rates, the market is pricing in two 10 basis point rate hikes by the European Central Bank later this year, with the possibility of a third move, according to Reuters. But Christine Lagarde will reiterate tomorrow that she considers a rate hike unlikely in 2022.
The Euro and the Bund yields rise
The rise in the appetite for risk boosts the euro, which has risen to 1,126 against the dollar, as well as the currencies of emerging countries. Thus, yields on bonds from “core” Europe rise, with the Bund in the lead, on the wave of greater propensity for risk. Berlin's 0,045-year rate is back above zero (+2019%). It is the highest level since May 2, while 5-year and 2019-year rates have seen their highest levels since March 2018 and December XNUMX, respectively.
The yield on the 10-year BTP also rose to 1,42%, for a spread of 138,2 basis points. In January, the balance of the state sector closed, on a provisional basis, with a requirement of 900 million euros, an improvement of around 3 billion compared to the corresponding value in January 2021. Today the issue via syndicate of the new security indexed in May 2033 for which via XX Settembre has mandated a syndicate of banks.
Piazza Affari at the top (+1,53%), Draghi media with Putin
Piazza Affari was the queen of Europe yesterday with an increase of 1,53%, which brings it back to 27.224.
On the international front, we note the phone call between the Italian premier Mario Draghi and the Russian president Vladimir Putin. At the center of the conversation the Ukrainian crisis and bilateral relations. "President Draghi underlined the importance of working towards a de-escalation of tensions in light of the serious consequences that an escalation of the crisis would have", reads a note from Palazzo Chigi. Furthermore, "a common commitment for a sustainable and lasting solution to the crisis and the need to rebuild a climate of confidence were agreed". For his part, Putin would have guaranteed to keep gas supplies stable for Italy.
Price lists also up in the rest of the continent: Paris +1,43%; Amsterdam +1,33%; Madrid +1,3%; London +0,95%; Frankfurt +0,94%.
Sale Essilor Luxottica +2,8% on the buyback launch date. Ubisoft increased sharply (+3,3%) on the wave of Sony's blitz on Wall Street on Bungie.
Saipem crisis: a pole is being studied with Maire
Dramatic hours for Saipem (-1,48%, just under 1,30 euros), yesterday bringing up the rear of Piazza Affari with a drop that reached its lowest since October 1992. A board meeting was held during the day to address the crisis that exploded with profit warning from which emerges the need to flesh out the group's coffers by at least one billion. Today the unexpected crisis will be at the center of the board of CDP, the second largest shareholder behind Eni (+0,8%).
Fierce criticism by analysts of the absolute lack of transparency of top management who at the end of October had illustrated a very different picture. For everyone, the judgment of Kepler Chevreux is enough: “Inflation and Covid – we read – are just excuses. Yesterday's is the first major sign that the quality of the backlog is very weak and execution is very poor. We fear an iceberg is being created which could lead to many negative elements, including a jumbo capital increase”. Among the possible solutions is the idea of an engineering hub under Maire's leadership and a key role for CDP.
The crisis does not affect Tenaris (+5%), in line with the rise in crude oil prices on the eve of the monthly OPEC+ summit.
Nexi leads the financial race
Banks and financials continue the rise of the eve, triggered by the newfound political stability after the election of the President of the Republic.
It was Nexi who led the way with a rise of 6,2%. Among the traditional banks, Bper +3%, Banca Bpm +2%. Big Intesa Sanpaolo and Unicredit are also on positive ground, both +1,5%.
Luxury shines: Berenberg promotes Moncler
The luxury goes up. Moncler is up 5% above 59 euros after Berenberg raised its target price to 57 from 53 euros. Salvatore Ferragamo scores +3,5%, Brunello Cucinelli +7%.
Ovs does well in large-scale consumption (+10%): sales, higher than expected, reach 1,36 billion euros (+34,6% compared to 2020, recovering the levels of 2019).
Stellantis: sales in Italy still in the red
Stellantis +2,20%. Yesterday evening it was announced after closed exchanges that in January the group's registrations in Italy amounted to 38.593 units, down 26,7% compared to 52.635 in January 2021. The group's market share stands at 35,8 %, down from 39,2% in January 2021.
Buzzi Unicem gains 2% after the better-than-expected results of HeidelbergCement which owns Italcementi.
