The agreement with Greece has not been reached. The "black smoke" was announced when the European lists had closed their doors in the belief that a general agreement was now imminent. Hence the fear that the Stock Exchanges, galvanized yesterday by the excellent US data, could experience a difficult day.
In Asia, however, the driving effect of Wall Street prevails. Tokyo gains nearly a percentage point after the central bank confirmed that Qe is set to continue. Hong Kong (+0,8%) also rose, managing to avoid the contagion of Shanghai (-2,8%) and Shenzhen (-3,3%), which closed the worst week since 2008 with a loss of more than 12% .
Wall Street responded with great euphoria to incoming messages from the Fed: Dow Jones rose 1%, S&P 500 +0,98%. The economy triggered a rain of positive data confirming a solid recovery without inflationary tensions. In May, consumer prices remained unchanged on the same month of the previous year. Meanwhile, the American labor market continues to pull: last week the new applications for unemployment benefits remained well below the critical threshold of 300, at 267, 10 less than expected by economists on average.
NASDAQ RECORDS. “ELECTRONIC HEALTH” FEVER EXPLODES
But leading the race was the Nasdaq (+1,34%) which reached a new historic record at 5.132,9 points. The Time Square index has discovered a new driving sector: electronics applied to health. Fitbit stock made its triumphant debut yesterday, up almost 50% to a value of more than $4 billion. The company, which makes wearable devices for tracking physical activity, soared to nearly $32 per share versus $20 in its offering.
The company, founded seven years ago in San Francisco, closed 2014 with revenues that tripled compared to 2013, at 745 million dollars. At the end of March, Fitbit had sold 20,8 million devices to monitor heart rate, distance covered in runs, calories burned and other sensitive health data.
FROM THE USA A PUSH TO PIAZZA AFFARI (YESTERDAY +1,06%)
Piazza Affari and the other European Stock Exchanges also accelerated in the final stages in the wake of Wall Street and the rumors (later disappointed) on the possibility of an extremis agreement on Greece. In Milan yesterday the FtseMib index closed with an increase of 1.06%, at 22.460 points. The Paris Stock Exchange rose by 0,2%, Frankfurt +1,1%, Madrid +0,5%. On the government bond market, the yield of the BTP drops to 2,28%, from 2,31%.
COLD SHOWER FROM GREECE. EXTRAORDINARY EU SUMMIT MONDAY
“No agreement in the Eurogroup. A strong signal to Greece to take the negotiations seriously”. With this tweet, European Commissioner Valdes Dombrowski froze market expectations, supported throughout the day by Angela Merkel's message ("an agreement is possible" he said in Parliament in Berlin).
The President of the European Council Donald Tusk has convened a Eurosummit for Monday at 19 pm, an extraordinary summit of the heads of state and government of the countries of the euro area on the Greece case. It will be up to the prime ministers to find a solution to avoid a now probable collapse. In the last three days more than 2 billion euros have been withdrawn from current accounts, there is a risk of a bank lockout as early as Monday. Meanwhile, tax revenues fell 24% lower than forecast in May. The budget surplus (1,5 billion) was made possible by the suspension of all state payments, except salaries and pensions.
The road to an agreement is getting narrower. According to the German newspaper Die Zeit, Greece's international creditors, with the exception of the International Monetary Fund, intend to offer the extension of the current aid program to Greece until the end of the year. But a different attitude on the part of the Greek negotiators, deaf to any European request, is needed, under the pressure of the Athens public, which asks not to give up.
It's easy to predict a tragic opening for the Athens Stock Exchange, yesterday in the final just above parity after being down 4% in the morning, on the lows of the last three years. The yield on the 2-year Greek bond fell to 28% from yesterday's 30%, while the 10-year one fluctuates around 12,5%.
FLY TELECOM. BOLLORE' IN FAVOR OF THE SALE OF TIM BRASIL
In Piazza Affari the fever for Telecom Italia exploded yesterday (+4,5%), in first place among the blue chips in Piazza Affari. Bloomberg reports that Vivendi, the future main shareholder of the telephone company, would be in favor of the sale of the Brazilian branch Tim Participacoes. Vivendi itself aims to increase its stake in Telecom Italia up to 15% as early as next month, once the freed up the shares held by Telco, which holds 22,4% of the capital. The transfer of 8,3% of the ordinary share capital of Telecom Italia from Telefonica to Vivendi will therefore be effective, which will become the first shareholder of the group.
Meanwhile, in view of the debut on the stock exchange next Monday, it was officially communicated the share price of the Inwit IPO, the subsidiary of the transmission towers: 3,65 euros, corresponding to a valuation of the company of 2,19 billion euros. Following the placement of 40% of the capital, 875 million euros will enter the group's coffers. Raymond James has started coverage of the Telecom share with an Outperform recommendation and a target price of 1,32 euro.
SAIPEM COLLAPSES: CDP'S ENTRY INTO THE CAPITAL STALLS
Heavy decline of Saipem (-5%) affected by the rumors of a postponement of the entry among the shareholders of Cdp and the consequent capital increase, which in any case will take place judging by the rumors on the increase in debt.
At the request of Consob, the company commented that "any anticipation of presumed data to a punctual day is not significant". The half-year closing data will be communicated on July 28th. Furthermore, it was reiterated that "no capital increase and/or refinancing operation was brought to the attention of the Board of Directors".
The parent company Eni rose by 0,6%. Tenaris -0,5%. Electric stocks and utilities are in great fibrillation. In Milan Enel rose by 2%, accompanied by A2A (+1,7%), Snam (+0,4%) and Atlantia (+2%).
POSITIVE BANKS. TODAY IN THE TRENCH
Yesterday was a positive day for banks, today in the trenches in the face of tensions over Greece and the foreseeable impact on government bonds. Intesa rose by 1,7%, Unicredit +1%, Banca Pop. Milan +1,7%. Brilliant Ubi (+1,28%). Bfor +0,07%. Nomura has started hedging the stock with a buy rating and a target price of 8 euros.
Monte Paschi was negative (-2,19%), hit by profit-taking after two days of strong increases. Insurance companies also performed well: Generali +0,8%, UnipolSai +1,1%.
FCA INSISTS ON GM TRACK. ALFA OPERATION HAS BEEN STARTED
Almost unchanged Fiat Chrysler (+0,1%) awaiting the launch of the new Alfa and the major maneuvers on the merger front. The Gm track has not been abandoned. Indeed, Reuter reports that the US company has entrusted Goldman Sachs to examine any proposals from Sergio Marchionne who, for his part, has recruited UBS. Meanwhile Morgan Stanley, close to both companies, has decided to stop covering the GM stock.
Bernstein's Max Warbuton (rating underperform, target price at 6,25 euros) remains skeptical about the possibility of reaching the sales volumes announced for Alfa Romeo. In the rest of the sector Finmeccanica is positive (+1%), while StM loses 1,1%.
