Start of a turbulent week for the open markets on Easter Monday. Under pressure from technology sales, Wall Street opened the second quarter in deep red: S&P -2,23% (or -10,3% from the highs of January 26), Dow Jones -1,9%. The Nasdaq dropped 2,74%. Yields on T bonds shot up, slipping to two-month lows while waiting for the job data to be released on Friday: a positive result could accelerate the rate hike. The 2,72-year T-Bond trades at XNUMX%.
To find a worse start to the second quarter for the US Stock Exchange, we need to go back to 1929: let's beg our spells.
CHINA REPLY TO TRUMP ON DUTIES
The Asian price lists are also negative. Chinese stocks are down 0,7% this morning after Beijing released on Sunday the list of duties imposed on imports from the USA (128 products affected, including pork). Complicating the picture are Trump's new threats to abolish NAFTA if Mexico does not cooperate in curbing illegal immigration and the news that the US president, shortly before expelling 60 diplomats from Moscow, had invited Vladimir Putin to the White House . Hong Kong -0,7%.
Tokyo was also weak (-0,9%), recovering however after the opening in deep declines. The other markets in the region were negative under the pressure of the news coming from the USA. In Seoul (-0,5%) Samsung loses ground (-2,1%).
AMAZON AND TESLA UNDER FIRE. INTEL CRASHES
Amazon and Tesla are the two plugs that marked the start of the second quarter of Wall Street. Under the ax of Donald Trump, determined to agitate the taxman's weapon against the e-commerce leader, Amazon suffered a massive loss, exceeding 5,2%. It's worse for Tesla (-5,13%), despite Elon Musk trying to make her laugh with a photo of him passed out and the inscription: "I'm bankrupt, no one bought my Easter eggs". Operators do not appreciate: Model 3 production remains below promises (2 units a week); the US authorities investigate the fatal accident of a Tesla SUV on autopilot; the bond that was snapped up in August plummets. The war bulletin concerns all the big names in technology: Facebook loses another 2,6%, Netflix does worse (-4,6%). Alphabet -2,5%. It holds only Apple (-0,8%). The worst stock on the Dow Jones was Intel (-6%): Apple has decided to produce its own MAC microprocessors, now supplied by Intel.
SPOTIFY DEBUTS TODAY, ONLY HUMANA GOES OUT
Today the Spotify title makes its debut in New York. The music streaming giant begins trading with a valuation of around 30 billion dollars, without being preceded by an IPO.
The only positive note were the purchases on Humana (+4,4%), the life insurance that could be purchased from Wal-Mart (-3,8%) in an anti-Amazon function.
The crisis in tech stocks, already the driving force behind Wall Street's rise, falls on a market that is already tense both due to increasingly bitter commercial skirmishes and due to expectations of the data on the labor market to be released on Friday: a very positive result could push the Fed to accelerate rate hike.
To counter pessimism comes a note from Morgan Stanley: after the recent declines, prices on Wall Street, according to the broker, are back cheap.
The currency market is calm, there is only a slight appreciation of the yen, to 105,9 against the dollar.
Oil is also weak, recovering slightly after yesterday's sharp drop (-3,7%) on open markets: Brent trades at 67,06%, Wti at 63.08 dollars a barrel.
EUROPEAN FUTURES DOWN, PMI DATA TODAY
Futures on European stock exchanges anticipate a 0,8% drop in stock exchanges on the Old Continent. The PMI data relating to the trend of manufacturing activity in the Eurozone will be released in mid-morning.
Tomorrow, the opening day of the consultations with President Sergio Mattarella for the formation of the new government, the data on Italian unemployment for March will be announced. Hot week also for the negotiations on the Ilva redundancies and for the fate of Alitalia.
PIAZZA AFFARI IS CONSOLE WITH DIVIDENDS
Piazza Affari restarts after a brilliant quarter: the Ftse Mib index recorded an increase of 3,2% in the first three months of 2018, much better than the Frankfurt (-6,6%) or Paris (-2,2 ,8,3%). Only the Brazilian Stock Exchange (+XNUMX%) can boast a better performance.
A note of optimism at the beginning of the second quarter (according to the experts more complicated) was spread by the prospect of the reinvestment of the coupons arriving after the closure of a rich dividend campaign: the profits already announced by the companies listed in Milan amounted to 20,2 billion euros with an increase of 16,8% on the 17,3 billion of a year ago, thanks also to the return to profit of Unicredit.
Utilities excel, from Snam (coupon close to 6%) to Enel and Terna (dividend yield equal to 4,9%). At the top of the rankings are also Banca Intesa (6,94%) Generali (5,53%) but also Eni (5,7%) and Poste Italiane (5,8%).
THE MEDAISET-SKY AXIS TESTED BY THE MARKET
The spotlights were on Mediaset this morning after the historic agreement with their all-time rivals, namely Sky. From next June XNUMX, Mediaset Premium will have nine channels on Sky, which in turn will offer a paid offer available on digital terrestrial, on new frequencies made available by Mediaset. After years of clashes, the premises have been created for the Mediaset Premium platform to switch to Sky in the coming months, with Mediaset remaining its sole publisher. The Biscione would thus solve its problems related to the management and costs of the paid platform, as well as increase revenues. The big defeat of the match is Vivendi, because with the agreement the project of an alliance between Telecom and Mediaset in an anti-Sky function vanishes.
VIVENDI UNDER FIRE, WAITING FOR THE TELECOM BOD
A crucial week also for the tug of war between Vivendi and the Elliott fund. On Monday the 9th, the Telecom board of directors will have to decide on "any actions" against the board of statutory auditors which has agreed to integrate the agenda of the meeting on the 24th with the new proposal of the six directors indicated by the fund headed by Paul Singer.
INTESA MOVES ON MANAGEMENT. UBI SHAREHOLDERS' MEETING SCHEDULED
Another topic under the spotlight concerns savings management. Intesa San Paolo CEO Carlo Messina confirmed to the Financial Times that the leading Italian bank, in addition to proceeding with the integration of the subsidiaries Intesa Vita and Fideuram, is available. Transfer a minority stake in the new hub to a major international operator in the sector (prime suspect BlackRock). The goal is to protect the leadership in managing the savings of the wealthiest (and most profitable) customers from Fintech competition.
The Ubi assembly will be held on Friday.
