News that some US states have opened an investigation against Apple, accused of potentially misleading consumers with its business practices, unleashed a wave of sales on Thursday night on the big techs. Operators took the opportunity to reduce exposure to Apple stocks – 4,6% (or more than 80 billion dollars) but also to Microsoft -4,3%, Amazon – 3,7%, Facebook -3%. Worst of all Intel – 10% in the aftermarket after admitting a six-month delay on the roadmap of the new chips. Also Tesla, a momentum game on the wave of excellent results, left 5% on the ground.
Is the golden age of tech over? Too early to tell. If anything, the signs are multiplying that say that both the health crisis and the economic one, far from being overcome, are still biting.
NEW WINDS OF THE COLD WAR: SHANGHAI -2,3%
- The slowdown in US stock exchanges had an immediate echo this morning in Asia. The largest decrease is that of the Shanghai Composite, -2,3%, penalized by the news that the Chinese authorities have revoked the permit of the US consulate in Chengdu. A Chinese researcher accused by the FBI of lying on her visa about her ties to the People's Liberation Army has taken refuge in the Chinese consulate in San Francisco. US Secretary of State Mike Pompeo has called on the "free world" to "trump the new tyranny" represented by China.
- South Korea's stocks fell 0,7%, Sydney's S&P ASX 200 1%, Mumbai's BSE Sensex opened 0,5% lower.
- The American stocks were weak with the exception of the Russell, the PMI index. The Dow Jones falls 1,23%, S&P 500 – 1,31%. The Nasdaq dropped 2,29%.
USA, REQUESTS FOR SUBSIDIES ARE GROWING AGAIN
In the United States, four million people are positive for the coronavirus and there are more than a thousand deaths for the third consecutive day.
Initial jobless claims rose by 18 to 109 million in the week ending July 1,4, recovering for the first time since March, when a peak of 6,9 million claims was reached. There is a stalemate between the White House and Republicans in the Senate over new measures to support the American economy.
Wall Street futures are down slightly.
HOLD OIL, ONLY GOLD SHINES
Brent Oil closed down 2,2% on Thursday, up slightly to $43,4 this morning.
Gold remains close to its nine-year high at $1.887.
EUROPE SUBTONE, THERE IS NO AGREEMENT ON AFTER BREXIT
The European stock markets were subdued yesterday, despite two strong points: the state of grace of the bond market and the recovery of interest in the car, starting from Germany. The pound is losing ground: Michel Barnier, head of the EU delegation, accused London of not wanting an agreement after Brexit. It is very unlikely that the UK and the EU will be able to conclude a trade deal on post-Brexit relations by July.
MILAN SUFFERS, THE CAR STARTS FRANKFURT AGAIN
Piazza Affari -0,69% to 20.456 points, accelerates sales in the final.
Frankfurt +0,05% is the only one to close with a slight increase thanks above all to the push of the auto sector: the interest in the sector was sparked by Daimler's quarterly: +6% the Stuttgart giant said in the last month sales have recovered significantly: the quarter closed with a loss of 1,9 billion euros, but forecasts for the whole of 2020 improve, so much so as to estimate the return to a positive operating result (Ebit). BMW +3,7% and Volkswagen +2,3% also rose
PERNOD CONSOLA PARIS, CAMPARI ON THE RUN IN MILAN
Paris and Madrid are almost flat, both -0,07%. The good momentum of drinks continues: after Cointreau on Thursday it was Pernod Ricard +2,46% that beat forecasts. In Milan Campari is up 1,95%.
London +0,07%. According to Bloomberg, below the official tightening, the EU and the UK are negotiating. The two main obstacles concern the role of the European Court of Justice and the constraints of European state aid in UK practice.
THE SPREAD FALLS BELOW 150 POINTS
The most positive note of the day comes from the bond sector, still supported by the recovery effect. After a dip to 146 basis points, the lowest since February 25, the Italy/Germany yield premium on the ten-year stretch closed the session at 146 basis points from 152 on Thursday evening.
The 1-year BTP rate fell below 4% - a record since March 5 - while the 0,50-year rate falls below XNUMX% and the two-year rate remains in negative territory.
In four sessions, the ten-year yield has burned 18 basis points and seems destined for the best weekly performance of the last two months.
At the July 28 auction, the Treasury will offer up to 4,25 billion between 24-month Ctz and Btpei.
BANKS, THE APPEAL OF RISIKO Dwindles, UNIPOL RISES
The drop in interest in banking risks largely explains the negative session in Piazza Affari, the only stock exchange in the Eurozone to close in the red. The CEO of Unicredit -1,9%, Jean-Pier Mustier, reiterated that the bank is not looking at M&A operations. Mps also down, down by 2,2% after the rush of the last few sessions. In the red, Bper -2,8% and Banca Ifis -3,18% at 9,58, on which Banca Akros lowered the recommendation from accumulated to neutral, target confirmed at 10 euros.
Unipol up +3,96%: Equita Sim raised the target price by 6% to €5,2, confirming the buy rating.
Il board of directors of Ubi reiterated the no to Intesa Sanpaolo's offer but acceptances rose to 26,4%.
THE ECB FREEZES THE COUPONS, MAYBE EXCLUDED FINECO AND MEDIOLANUM
In the coming days, the ECB should decide to freeze the payment of dividends for the banking groups under its supervision for the whole of 2020. Instead, the possibility of distributing dividends would be left to the banks under the supervision of the national central banks. If this orientation were confirmed, Banca Generali, Banca Mediolanum and FinecoBank, according to Intermonte, would be among the entities that would be allowed to distribute the 2019 coupon in the fourth quarter of 2020. All three have very large capital positions and an exposure to the risk of extremely low credit.
AUTOMOTIVE HOLDS, FCA STARTS AGAIN IN BRAZIL
Also in Milan, as in Frankfurt, automotive stocks are positive. FCA +0,62% after the data on sales in Brazil recovering 25% on the previous month. Ferrari+0,66%. Pirelli +0,37%, after the Board of Directors established, on the proposal of Marco Tronchetti Provera and reporting directly to him, the co-CEO general management entrusted to Angelos Papadimitriou with effect from 1 August.
STM RUNS, THEN STOPS. AKROS RAISES THE RATING
After a brilliant start, the run of Stmicroelectronics stopped - 0,41%, supported at the start by the upward revision of the guidance on revenues for the current year, announced with the publication of the half-yearly report. The analysts are positive. According to the Equita broker, “overall we believe that the results and the guidance could lead to an increase in the 2020 estimates of between 5% and 10%”. Banca Akros has raised the rating of the stock to accumulated from neutral, with a revised target of 30 euros from 26 euros.
Updates: Intel's delay on new chips affects Stm losing 4% around mid-morning on the Milan Stock Exchange while the Ftse Mib is down by 1,8%, in the wake of the other European lists.
ATLANTIA SUFFERS, THE ASPI CASE IS NOT CLOSED YET
Atlantia -2,5%. The negotiation to translate the sale of Aspi into a contract according to the political will has entered a stalemate. The Tci fund has sent a harsh letter of protest to the director general of the Treasury in which it rightly complains that the holding company has been forced to sell its stake in Autostrade per l'Italia under the threat of a revocation of the concession. Traffic on the network managed by Autostrade per l'Italia decreased by 14,4% year on year last week, while passenger traffic in the group's Rome airports decreased by 82,6%.
DIASORIN ALSO UNDER FIRE
Still under pressure Diasorin, which sells about 5%, among the worst in the list, penalized by the news of the opening of an investigation by the Pavia prosecutor's office on the agreement stipulated with the San Matteo hospital on serological tests for Covid. According to a trader "the news of the investigation is obviously disturbing even if the impact on the accounts of the diagnostics company is negligible". Equita also writes that "in our opinion, the news will not have a significant quantitative impact on Diasorin".
GIGLIO, LEADER OF E-COMMERCE, TAKES OFF
In the rest of the list, the performance of Giglio Group, a company active in the field of electronic commerce, should be noted, among the best stocks with a leap of 5,9%. In the first half, revenues increased by 25%.
Updated at 11:05 AM Friday July 24, 2020
