After the Cleveland brawl, the organizers are studying new rules to prevent the duel between Joe Biden and President Trump from escalating again in the second round. But we will not proceed, for now, to turn off the microphones when the rival speaks. Trump, meanwhile, praised the "Proud Boys", a violent far-right group.
In Washington, however, peace reigns. The dialogue between Democrats and Republicans on a new aid package to be allocated to families, companies and institutions affected by the Coronavirus continues despite Donald Trump's increasingly unscrupulous attempts to delegitimize the November vote.
MNUCHIN MEETS PELOSI: NASDAQ +0,7%
Reassured by the fact that Steven Mnuchin spent an hour and a half in Nancy Pelosi's office, Wall Street is back on track, after the day's decline in the Biden-Trump televised brawl: the Nasdaq closed up 0,7% , September ends with a 6,5% decline and the third quarter with a 10% gain. S&P 500 last night +0,8%, -4,6% in September and +8% in the quarter. Dow Jones +1,2%. Futures up this morning.
PALANTIR DEBUT, THE IPO CLOSE TO THE CIA
Numerous topics for the day. Above all, the landing on the Stock Exchange of Palantir stands out, the freshman promoted by Peter Thiel who deals with artificial intelligence on behalf of the CIA. At its debut, the stock marked an increase of 38% for a market capitalization of 22 billion dollars.
Nikola's Revenge (+14,5%). The electric truck company has announced the arrival of new partners.
Micron Technology -7,4%. The chip giant has not obtained the license to continue supplies to Huawei.
MODERN: NO VACCINE BEFORE US VOTE
Moderna, late in the evening, said that there is no talk of having the vaccine for election day. In the interview given to Financial Times, the managing director Stéphane Bancel anticipates that the company does not intend to use the urgent procedure in the authorization request to be presented to the health authorities, at least until the end of November: the approval for the vaccine launch could arrive at the end of March, or early April: large-scale deployment should start in May.
In the aftermath of the Stock Exchange, the cruise companies rose: Carnival Corporation, Royal Caribbean Group and Norwegian Cruise Line. But there is little to be optimistic about: according to reports from the Wall Street Journal, the ban on the activity expiring on September 30 will be extended until the end of October.
CHINA AND KOREA ON HOLIDAY, JAPAN IN TILT
There is very little movement in Asia this morning. The financial markets of China and South Korea are closed for holidays. What's more, the Tokyo Stock Exchange is down due to IT problems. Sydney's S&P ASX 200 (+1,5%) and Singapore's FTSE Strait Times (+1,3%) rose.
Brent oil is up 3%, to $42 a barrel; behind the rebound is the unexpected drop in US crude inventories.
LAGARDE: INFLATION, FOLLOW THE FED. WEIDMANN RISES
The fall in inflation is increasingly frightening. After the slowdown in Germany, it was yesterday the turn of France and Italy, with an unexpected decrease of 0,6% which confirms the risk of recession for the Eurozone. This is how the confrontation between the various souls of the ECB heats up.
“The formulation of the inflation target below but close to 2% was adequate in 2003, when the ECB was trying to establish its credibility and too high inflation was the main concern. But in the current situation the picture is different”. Thus the president of the ECB, Christine Lagarde, opened up the possibility of following the example of the Fed adopting more flexible inflation targets in order to keep real rates further down.
Jens Weidmann replied immediately: "The more freely we interpret our mandate - said the number one of the Bundesbank - the greater will be our risk of involvement in politics". The two souls of the Central Bank (Fabio Panetta and Philip Lane stand out among the doves) will face each other on October 29, when Frankfurt could announce additional manoeuvres.
THE COMPARISON FREEZES RATES: BTP AT 0,82, SPREAD AT 138
Against this backdrop, the government bond market marked time waiting for news. The BTP follows the "core" bonds and moderately widens the decline in the final session. At 17,30 Italian time the 0,82-year rate is worth 0,79% from 0,52% of the final rate the day before. The Bund trades at -138%. The Italy-Germany yield differential on the ten-year segment is XNUMX points.
MILAN -0,24%, THE MOVEMENT WILL BE 40 BILLION
Uncertain climate also for shares in the last session of September. Piazza Affari loses 0,24% and drops to 19.015 basis points.
The German ambassador to the European Union said through his spokesperson that a delay in the launch of the Recovery Fund is inevitable: the goal of January 2021, XNUMX will probably not be achieved due to the opposition of Hungary and Poland to the clauses of the agreement framework which require the governments of the beneficiary countries to comply with basic laws.
In Italy we are starting to talk about the 2021 budget maneuver: the Minister of Economy and Finance, Roberto Gualtieri, said that a 40 billion euro maneuver is planned. The update note of the Def, which should be approved on Sunday, forecasts a deficit/GDP ratio of 2021% for 7, up from 10,8% in 2020, against a GDP expected to rise by 6% from -9% in 2020. XNUMX.
STM: REVENUES BEYOND FORECASTS
This morning Stm communicated the preliminary data for the third quarter. Net revenues rose to $2,67 billion, above the forecast range.
EUROPEAN PRICE LISTS WEAK, SHELL CUTS 9 THOUSAND SEATS
On a similar wavelength are Frankfurt (-0,5%); Paris (-0,59%); Madrid (+0,05%) and London (-0,47%).
Of note in Paris Suez: +6,3% after Veolia improved its bid for Engie's 29,9% stake in Suez.
Royal Dutch Shell gained 0,5% after announcing it would cut up to 9.000 jobs, more than 10% of staff.
SAIPEM AND TENARIS RUN ON SARAS
Even in Milan oil companies in the limelight, after the losses on the eve. Leading the race Saipem (+4,93%) ahead of Tenaris (+3,15%). Eni rises by 0,35%. Saras +4,45%.
BANCO BPM AND BPER LEAD THE BANKS
Generally positive session for the banking sector. Leading the race is Banco Bpm (+3,92%) ahead of Bper (+1,95%) which has acquired a business unit linked to the takeover bid on Ubi from Intesa Sanpaolo (-0,24%). The Modenese bank's board of directors approved the capital increase preparatory to the purchase of the bank branches.
SKIP THE SALE OF BANCA GENERALI TO MEDIOBANCA
In the red Banca Generali (-4,35%): in recent months Mediobanca has evaluated the acquisition of the asset management company, only to then shelve the project because the performance of the Generali share (-35% since the beginning of the year) - which Mediobanca would have used part of it to finance the deal – it would have made the operation no longer profitable. During the Capital Market Day, the CEO of Generali, Alberto Nagel, said that the 13% stake in Generali could be sold to finance operations of important dimensions.
According to Giovanni Razzoli, banking analyst at Equita Sim, "a possible acquisition of Banca Generali would have been consistent with the strategy repeatedly announced by the CEO of Mediobanca, which envisages strengthening businesses with lower capital absorption than corporate/commercial lending" , with a revenue model based above all on recurring commissions and which therefore guarantee greater stability. Monte Paschi +1,54%, Banca Popolare di Sondrio +2,05%. Azimuth +0,5%.
HIGHLIGHTS DOVALUE, ZANETTI TOWARDS DELISTING
Focus on Nexi (+1,54%), in view of the m&a deal with Sia. Among the mid caps, Dovalue (+4,83%) and Maire Tecnimont (+4,43%) stand out on the rise. New closing down for Enav (-0,49% to 3,24 euros), on which Kepler Cheuvreux reduced the target price from 4,5 to 3,6 euros, confirming the hold recommendation.
Zanetti +29,17%, to 4,96 euro: Mzb Holding has decided to launch a voluntary takeover bid to acquire all of Massimo Zanetti's ordinary shares. The takeover bid is aimed at the revocation of the quotations on the Star and the consideration is equal to 5 euros for each share.
