Expectations are modest, but it is still important that the big names get back into dialogue. This explains the rise in Chinese price lists which reopened their doors this morning after ten days of holidays which, among other things, recorded a promising growth in consumption, a welcome consolation in the face of disappointing data from the services index. To curb the enthusiasm of the Stock Exchanges in view of the new confrontation between Robert Lightizer, the representative of Donald Trump, and the deputy premier Liu He came the news that Washington has blacklisted other Chinese companies, including Hikvision, a jewel of intelligence artificial, in response to the treatment of Muslim minorities in China. But, to foster cautious optimism, it is the convenience for the two leaders to keep the door open for dialogue at a delicate moment for Trump who, under fire for the threat of impeachment and for new troubles with the taxman, has found nothing better than opening a new, confused front in the Middle East by reopening the Kurdish question. Even Xi, nailed by the protests in Hong Kong, risks losing part of his charisma, he needs a success to counter the downturn in the economy.
THE WORLD BANK: BEWARE OF BREXIT
In this context, markets, awaiting indications from the Fed, take note of the alarm of the president of the World Bank, David Malpass: the global economic outlook is deteriorating due to the uncertainty linked to Brexit, trade tensions and the European recession .
The note of optimism comes from the East. Chinese stocks reopened with an increase of 1,1%. Hong Kong also rose +0,7%. The Stock Exchange has renounced the purchase offer on the London Stock Exchange, which controls Piazza Affari. Last month, the LSE had already rejected the first offer from Hong Kong which, in a note, today declared that it was not in a position to make offers for the next six months and underlined its disappointment at having had to withdraw the proposal.
SAMSUNG +1,2% DESPITE FALLING PROFITS
The Korean Kospi is also on positive ground +0,7%. Samsung shines +1,2%: profits drop by 56% but the market feared worse. Tokyo also did well +1,1%.
The dollar yuan exchange rate reopened at 7,126, down 0,3%. The Japanese yen weakens to 107,4 against the dollar.
Wall Street is more cautious, anxiously awaiting news from the Federal Reserve. Dow Jones in the red – 036%, worse than the S&P500 -0,45% on which Gm weighs -0,5%. The union again said no to the company's new proposals. NASDAQ -0,33%.
POWELL TALK TONIGHT, WALL STREET WEAK
Bond yields climbed slightly, that of the 1,58-year Treasury Note rose to 3% (+XNUMX basis points): Jerome Powell will speak at an event in Dallas in the early evening, some comments on the current economic situation and some monetary policy considerations.
Gold weakens to 1.491 dollars an ounce (-0,2%).
Brent oil rebounds from the lows of the last two months reached in the morning, North Sea crude climbs 0,6% to 58,7 dollars a barrel. The risk of a Turkish advance against the Kurds after the withdrawal of US forces is being felt. Trump, targeted by criticism for the decision, tweeted threatening Turkey in case of intervention. The lira is in sharp decline.
ENI AND SAIPEM SUPPORT THE ITALIAN STOCK
Two changes triggered the recovery of European stock markets in the afternoon, after a flat morning. The resumption of negotiations between the US and China and the surge in oil stocks after Donald Trump's decision to effectively leave Turkey a free hand against the Kurds. The reaction of oil was immediate and the rise of oil stocks on the lists.
In Piazza Affari, Saipem leads the race +3% to 4,12 euros. The stock also benefits from the news relating to new orders that arrived last Friday. The Italian group, in consortium with Boshelf and Star Gulf Fzco, has been awarded three new contracts awarded by BP for the development of the Azeri-Chirag-Gunashli oil and gas field offshore Azerbaijan.
Saras is also up 3% to its highest level since April. The company reported that the average refining margin in the Mediterranean area stood at $4,90/barrel last week, up from $3,60 the previous week.
Eni +1%. Tenaris +1,17%.
CONFINDUSTRIA: "RESTRICTIVE MANEUVER"
Milan rises by 0,85% and reaches 21.652 points. Istat photographs a weak picture for our economy in September. “The leading indicator has maintained a negative profile, suggesting the continuation of the phase of weakness in production levels”, reads the Monthly Note on the performance of the economy for the month of September.
The Conte-due maneuver is looming as "the most restrictive since the Letta government to date, also because the deficit-GDP ratio is approaching 3% and a correction is therefore necessary".
Frankfurt gains 0,71%. in Germany, industrial orders fell in August by 0,6% on the previous month and by 6,7% on an annual basis. Paris +0,61%; Madrid +0,87%.
JOHNSON WINS (ONCE LIKE) IN COURT
London +0,63%. The highest Scottish civil court has rejected the petition presented by some activists who asked to force Prime Minister Boris Johnson to postpone his exit from the EU in the absence of an agreement with Brussels by 19 October. Johnson has famously promised that Britain will leave the bloc on October 31, as planned.
CITIGROUP: LONG BTPs WHAT A GREAT DEAL
Coupon hunters head for Italy, the last oasis of positive yields in a sub-zero way. Citigroup yesterday advised its clients to focus on flattening the Italian interest rate curve, particularly attractive in the light of the new stimulus measures announced by the European Central Bank. The effects of the trend are already visible: the yield on the 30-year BTP, although it rebounded yesterday to 1,96%, is close to its historic low, almost 100 basis points more than the Spanish equivalent and 150 basis points more than the French oat. The 0,10-year Bund is below zero at -XNUMX%.
THE TREASURY AGAIN OFFERING SECURITIES IN DOLLARS
In this context, the Treasury decided, after nine years, to issue a new BTP in US dollars addressed, according to the press release, "to qualified, professional, and retail counterparties". The multi-tranche operation, which will start “in the near future, will be handled by Barclay's, HSBC and JP Morgan.
A BTP denominated in dollars is a rarity, at the moment there are only two in circulation, both thirty-year, one expiring in 2023 and the other in 2033. The first, issued by the Ciampi government in the year of the maxi devaluation of the lira, has a face coupon of 6,875%, The second, 5,375%. Right now, the one with longer maturity yields 3,4%, the one with shorter maturity 2,4%.
Just for comparison, the yield of the 1,94-year BTP in euros is XNUMX% today.
The Ministry of Economy and Finance, in the note, specifies that the bond will be SEC-Registered, therefore it should be sheltered from the restructuring risk envisaged by the collective action clauses (CACs), in force for euro zone bonds.
6 BILLION ANNUAL BOTS COMING THURSDAY
However, yesterday the 0,84-year yield deteriorated slightly, closing at 143,3%. The spread rose to a maximum of 142,9 and then closed at XNUMX points.
The Treasury announced Thursday that 6 billion 12-month BOTs will be offered.
ONLY SEVEN TITLES IN RED ON THE BUSINESS SQUARE
Piazza Affari made a significant recovery in the afternoon: only seven out of 40 blue chips that closed the session down - Only Nexi -1,12% suffered a drop of more than one percentage point. Leonardo (-0,4%) and Stm (-0,2%) were also below parity. The best stock was Amplifon (+3,73%) followed by Poste Italiane (+2,86%).
The banks led the rebound, starting with the former Popolari: Ubi +2,52%, Banco Bpm +1,53%, Bper +0,63%. The big names also did well: Unicredit +0,76%, Intesa +0,60%.
Generals +0,68%. Kepler Cheuvreux confirmed the hold rating by raising the target price to 19 euros from 18,3 euros.
COLD SHOWER ON SAFILO (-9,7%)
Hong Kong's high-risk situation weighs more and more on luxury stocks. But Moncler still scored a modest rebound +0,5%- Still in the red Ferragamo -0,6%. But the real cold shower came from Safilo (-9,72%). The hope of a takeover bid by Kering on the Venetian company vanished because the Parisian giant limited itself to renewing the eyewear supply agreement for the Gucci brand. Good news which, however, cools the speculations that had pushed the stock up (+23% in one week).
Tim (+0,88%) rose above 50 cents. Equita confirmed the buy rating and the target price at 0,62 euro, recalling that, during the EY Digital Summit conference in Capri, the minister of technological innovation, Paola Pisano, spoke of the importance of not duplicating network investments, while leaving the task of defining the terms of the agreement to private parties.
FLY CYBEROO, BI-ON SHOULDER STRAP
In great evidence Molmed (+3,5%) and Piaggio (+2,5%).
On the day of its debut at AIM Italia, Cyberoo, a company specializing in cyber security for businesses, closed at 4,333 euros (+51,5%) against a placement price of 2,86 euros, after a day characterized by various upward suspensions.
Bio On collapsed again and does not seem to have found the bottom yet: -19,77%. What weighs heavily is the confirmation that Consob has started comprehensive checks on the stock since the end of July after the strong negative positions taken by the US fund Quintessential. The Commission wants to understand if we are dealing with a case of market abuse.
