The increase in US rates is not imminent, the Asian markets are starting to end the week without particular emotions. Weak Tokyo (-0,11%), as well as Hong Kong and Shanghai (-0,2%). The dollar rebounds to 1,0675 against the euro. Wall Street is also holding back, after the gains following the Fed's decisions: the Dow Jones index lost 0,65%, the S&P 500 0,49% while the Nasdaq rose by 0,19%. Apple dropped 0,76% in the session that saw the stock debut in the Dow Jones 30 index in place of AT&T.
MILAN AT THE TOP, THE SPREAD IS WIDENING
Piazza Affari rises again in the aftermath of the Fed's communications thanks also to the rally of three blue chips: Enel, Pirelli and Saipem. The Milan Stock Exchange marks a rise of 1,1%, the highest among European lists. Frankfurt unchanged, Paris (+0,1) and Madrid (+0,4%) on positive ground. Outside the euro area, Zurich and London are up +0,4%. During the session, the Stoxx 600 index reached its highest level since 2007. The spread widens: the BTP yield rises to 1,24% while that of the Bund reaches a new all-time low of 0,18%.
ATHENS EMPTY THE CASHBOARDS OF PUBLIC COMPANIES
The exception is Athens (-2%). Yesterday evening, at the end of a crowded summit (Mario Draghi, Angela Merkel, François Hollande, Jeroem Djissembloem attended) the Greek premier Alexis Tsipras announced that he will soon present in detail the plans envisaged by the agreements with the Eurogroup. Angela Merkel was not moved: first the measures, then the money. The two-way match on Monday in Berlin will be decisive.
Meanwhile, in Athens the Greek government is scraping together the money needed to complete the payment of the last tranche of debt (350 million) with the IMF due today. Tsipras has asked public utilities to provide liquidity to the now empty state coffers through reverse transactions on debt securities. The spread between the Bund and the Greek 1.150-year bond jumped to 11,7 points for a yield of XNUMX%.
ENEL LIGHTS UP THE MARKET PLACE
"Good news", summed up the Goldman Sachs report dedicated to Enel's strategies, starting with the dividend policy. Analysts like it Enel's business plan (yesterday +3,3%) illustrated in London by CEO Francesco Starace. The most important Italian utility closed 2014 with a net result of 517 million euros (-84%) after write-downs of 6 billion euros. The dividend will be 0,14 euro. Starace announced a new dividend policy with a 50% payout for 2015 and an annual increase of 5% up to 65% in 2018.
“The group's strategy – explained Starace – is based on a consolidated position on emerging markets, a clear technological leadership and digitized distribution networks in more mature markets”. Ebitda growth of 2,4 billion euros is expected by 2019 with an increase in investments of 6 billion.
PIRELLI, OPA AND A CHINESE PARTNER FOR TRONCHETTI
Marco Tronchetti Provera draws out, enriched, the Opa project on the Bicocca already in the pipeline a year ago. Piazza Affari applauds and yesterday rewarded Pirelli with a flattering +3,3%. The operation, anticipated by Corriere della Sera, provides for the alliance of the current controlling shareholders, including the Russian Rosneft, with an Asian partner (the predicate is the Korean Hankook, the Japanese Yokohama, the Chinese China Chemical Corporation or the Zhongce Rubber Company). The next step will be the launch of a public offer on the company which could be followed by the spin-off of tires for industrial vehicles and the company's concentration on high-end products. Finally, the confirmation of Tronchetti's full managerial autonomy is envisaged for the next five years.
A FRIEND OF BEIJING ALSO FOR SAIPEM
The third reason of interest of the day is linked to Saipem (yesterday +3,9%). There are two reasons for the rally: the announcement of the joint venture created with PetroChina (49% in the hands of the subsidiary Eni, 51% to the Chinese) for the development of oil&gas projects in China, and the rumors according to which interest from part of the Russians from Rosneft.
The objective of the joint venture is the construction of turnkey plants in the oil sector in China: regasification terminals, onshore and offshore pipelines, storage tanks for gas and oil. Equita maintains the hold rating and the target price at 10,7 euro. An "interesting move", add the analysts of Mediobanca Securities (neutral rating and target price of 10,80 euros), as it could potentially open up the Chinese market, where PetroChina has a market share close to 80%, and the African market . Eni also recovered (yesterday +1%), despite the slowdown in crude oil.
The cement sector, driven by the major Holcim-Lafarge merger, is in evidence. Almost a year after the announcement of the negotiations, the two groups seem to have finally reached an agreement on the valuation of the assets, after having broken several times. The birth of a giant with a turnover of 41 billion seems so imminent.
In Italy, meanwhile, Banca Akros has promoted Buzzi (yesterday +0,08%) from hold to accumulated, with the target price going from 13 to 15 euros. Mediobanca Securities instead raised the recommendation on Italcementi (+1,6%) from neutral to outperform, with the target price going from 7,7 to 8 euro.
TELECOM: 2,75 CENTS TO SAVINGS. VODAFONE IN METROWEB DEVELOPMENT
Telecom Italia was weak yesterday (-0,2%) on the day of the return to profit. After three years, the telecommunications group is reviewing its profit: the consolidated net result is 1,35 billion euros against a loss of 674 million in the previous year and 1,4 billion according to consensus expectations. The Board proposed to the shareholders' meeting, convened for May 20, a dividend only for savings shareholders of 2,75 cents per share for a total amount of 166 million euro.
Before the board meeting, Tarak Ben Ammar reiterated that he will defend the Italian spirit of the company. “It's a big company, and anyone who thinks it can be exported by foreigners, snatched at night, doesn't exist. It will remain Italian, regardless of who is the reference shareholder. As long as I, a Tunisian lover of Italy, am on the board, he will defend Telecom's Italian identity, perhaps more than the Italians”, said the Tunisian entrepreneur who is about to join the board of Vivendi. We have to bet, he added, "on the contents on the platform, the triple player, quadruple player, because this is the future of telephony, of the internet".
Vodafone Italia has signed a letter of intent with F2i to promote ultra-broadband, as part of the government's national plan, through Metroweb Sviluppo. At this point the market is wondering about the next moves of the former incumbent who, after the board's halt in the negotiations with Metroweb, has resumed contact with the CDP.
TLTRO, THE BANKS FILL UP. CARIGE INCREASE FOR 850 MILLION
The main Italian banks were awarded around a third of the 97,848 billion four-year funds assigned today by the ECB in the third TLTRO auction (Targeted long-term refinancing operation), structured to encourage credit to the real economy. The total amount is more than double that expected by market operators.
Strong recovery yesterday Unicredit (+2%) and Ubi Banca (+2,3%). Followed by Monte Paschi (+1,5%) and Intesa (+0,2%). Carige's capital increase will be 850 million. This was decided by the Bank's board of directors on the basis of indications from the EU supervisory authority. The transaction will be fully guaranteed by a consortium of banks led by Mediobanca.
Generali (+0,5%) was in positive territory yesterday. Cattolica also performed well (+1,7%) on the day of the results.
FINMECCANICA CELEBRATES: “WE'RE BACK IN BLACK”
Finmeccanica +1%. "We are back in black", said CFO Gian Piero Cutillo in a conference call with analysts in London, commenting on the group's results. In fact, the holding closed last year with a positive ordinary net result of 70 million euros, for the first time since 2010. As regards this year's guidance, CEO Mauro Moretti underlined, "we expect only ordinary dividends, no extraordinary ones unlike in 2014”. The company has strong liquidity and will not need to refinance until the end of 2017. So it has no pressure to sell assets.
As for the future of the US subsidiary, Drs, Moretti said he wanted to evaluate the results for the second quarter before making a decision. “If we want to improve our positioning on the US market, perhaps an industrial partner is the best solution. Otherwise – she added – we will look for a financial partner ”. Banca Akros raised its target from 13 to 13,2 euros, confirming the buy rating.
FCA STARTS AGAIN, BROKER PROMOTES AUTOGRILL AND CAMPARI
The FCA rally restarts after the break (yesterday + 1,8%): UBS has reduced the recommendation on the stock from buy to neutral, with the target price going from 13,5 to 16,5 euros.
Autogrill (yesterday +2,3%) received a target price increase from 7,75 to 11 euro from Jefferies (buy recommendation confirmed). Banca Imi raised the target price on Campari (+0,46%) from 5,5 to 6,4 euro, confirming the hold recommendation.
Banca Imi also increased Rai Way's target price (+0,09%) to 4,25 euros, from 3,88 to 5,02 euros, confirming the buy recommendation. Finally, Equita Sim raised the target price on Save (-0,16%) from 13,5 to 14,5 euro, confirming the hold rating.
