Washington's openness to liberalizing patents on anti-Covid vaccines has had immediate effects both on the diplomatic front and on the markets. On the eve of the European Council, Europe is divided: Italy and France, ever closer, on the US line; Angela Merkel against: a little to protect the primates of Biontech of Mainz, the result of the work of two geniuses who immigrated from Turkey, a little to defend the role of Berlin as a bridge between the West and the giants of the East, Russia and China . On the stock market level, both Pfizer and Johnson & Johnson have recovered their initial losses: it will take a lot of time, money and competent personnel (which are not there today) to compete with Big Pharma. The situation is different for biotech: the new US orientation threatens, at least in principle, the treasure of expertise accumulated by research in recent years. Hence the double-digit losses, however reduced during the day. Stephane Bancel, Moderna's number one, in announcing the company's first profit, wanted to clarify: "The US decision didn't make me lose a single minute of sleep".
Even the markets seem calm, comforted by the trend in employment: applicants for new layoffs in the US have fallen below half a million.
MUMBAI +1,1%, BEIJING'S EXPORTS FLY
The MSCI global index, based on the lists of 50 countries, is starting to close the week with a gain of 0,4%.
Biden's openness on vaccines favors the Mumbai Stock Exchange (+1,1%), despite the fact that Covid does not loosen its grip: 412 new infected.
Hong's Hang Seng gains 0,5%. CSI 300 of the Shanghai and Shenzen price lists +0,2%. Macroeconomic data on China released tonight shredded expectations. Exports are doing well, imports are even better, whose rise in April was the strongest in the last ten years. The Caixin PMI on services purchasing managers' expectations rose to 56,3, while the consensus expected a decline.
Tokyo's Nikkei is on par, pending the government's decision on extending the state of emergency in Tokyo and Osaka prefectures.
Wall Street futures are little moved. Yesterday the Dow Jones (+0,93%) set a new record. S&P 500 +0,83%, Nasdaq +0,37%.
The big names in technology, led by Apple, closed in positive territory after the data on jobs.
HOLD DOWN THE SYNTHETIC MEAT, TOURISM COMES BACK TO RUN
After the stock exchange, the quarterly results of Beyond Meat and Expedia arrived. The first, active in the food sector with a production of vegetable meatballs, closed with 108 million dollars in revenues, below expectations. The net loss ($27 million) was higher than expected in part due to a sharp increase in marketing costs. The stock lost 7% after the exchange.
The traveler services company beat forecasts, with revenues of $1,25 billion, down 44% year-over-year, but a sharp improvement over the previous quarters. Bookings are still down, -14%, but are much better than analysts' estimates.
IRON, COPPER AND ALUMINUM AT THE TOP
The rush of raw materials continues. Iron ore advances by 5%, copper and aluminum are close to all-time highs. Gold (+2,3% during the week) has once again crossed the psychological threshold of 1.800 dollars an ounce.
The market's expectation today is concentrated on the payroll data of US workers. New hires may have exceeded two million in April.
ECB NEWSLETTER: UNCERTAINTY REMAINS “HIGH”, CAUTION ON RATES
The ECB Bulletin states that the progress of the vaccination campaigns "should lay the foundations for a recovery of economic activity over the course of 2021, although it will still be necessary to wait some time for a complete recovery". Confidence is held back, in fact, by a context of "high uncertainty for which the timing of the easing of containment measures is not yet clear and further adverse developments associated with the pandemic cannot be ruled out". Without forgetting that “overall inflation is likely to rise further in the coming months”. At the end of this somewhat convoluted analysis, however, the "very accommodating stance of monetary policy" is confirmed, necessary to support the still fragile recovery.
MILAN +0,13%. VIOLA ENTERS EQUITA
Milan rises by 0,13%, to 24.495 points. Fabrizio Viola, former CEO of Monte Paschi, will join the Advisory Board of Equita.
Paris appreciates by 0,28%: SocGen advances by 5,46% thanks to better-than-expected accounts; on the other hand, EssilorLuxottica (+0,16%).
Frankfurt +0,21%. According to the Ifo institute, the boom in electric cars could lead to the loss of 100 jobs in the automotive sector.
German broadcaster ProSiebenSat.1 Media has shelved plans to sell online perfume retailer Flaconi due to lack of interest from potential buyers.
Madrid +0,19%. In Brussels Anheuser Busch Inbev is up 5,2% after the accounts.
THE BANK OF ENGLAND KICKS OFF TAPERING
London +0,5%. British fashion company Next gained 3,37% after revising its earnings guidance upwards for the year.
Bank of England left key rates unchanged at record low (0,1%) and size of bond purchase program at £895bn, but said it would slow bond purchase program to £3,4bn at week between May and August, compared to the current pace of 4,4 billion.
SPREAD TO 111. A NEW BTP 30 IS IN SIGHT
The BTP ends in decline, worsening in the final amid market rumors about the forthcoming issue by the Treasury of a new 30-year syndicate.
The pressures are felt above all on the long end of the curve, with the thirty-year rate ending at 1,93%, after a peak of 1,95%, the highest since mid-September, from 1,90% at the previous closure.
The ten-year bond hits a session high at 0,89% to close at 0,87% from 0,86%. The spread goes up to 111 basis points from 108.
The Treasury, for the first time in a year, has not raised the amount of quarterly issues, this is because the peak should have been reached.
MOODY'S REPORT CARD TONIGHT. POSSIBLE PROMOTION
The market looks calmly at tonight's appointment with Moody's opinion on the Italian sovereign rating, currently at Baa3, with a stable outlook. Some operators do not rule out an improvement in prospects.
In medium-long term auctions, France assigned 10,36 billion and Spain 5,44.
UNICREDIT SUPERSTAR. ORCEL: YES TO MERGER ONLY IF USEFUL
The pink jersey of the day was Unicredit (+5%), which in the January-March period reported a profit exceeding expectations of 877 million euros, dragging the entire sector upwards, reaching its ninth increase in ten sessions. The January-March period closed with a profit of 887 million euros, more than double the analysts' expectations. Revenues rose 7% to €4,7 billion. Common Equity Tier 1 improved, equal to 15,9%. Mario Orcel, speaking of M&A, limited himself to saying that it is not a purpose in itself, but "an accelerator and a potential improver of our strategic result, when it is in the best interest of the shareholders and we have full confidence in our ability to execute it" .
THE PEARL DOWRY DECREE IS COMING TO MPS
A rule in the draft of the Sostegni bis decree - which should arrive in the CDM next week, as said by the Minister of Economic Development, Giancarlo Giorgetti - could favor the merger with Monte Paschi (-1,23% after the surprise profit of 119,3 .239 million compared to the previous loss of 3,1) raising to XNUMX billion euro the share of tax losses that can be transformed into tax credits in the event of a merger.
BANCO BPM: REVENUES +5,9%, BPER ALSO RISES
With the stock exchange closed they were disclosed the results of Banco Bpm (+1,36%), better than expected. The institute closed the first quarter of 2021 with revenues up 5,9% compared to the same period of 2020 and profits beyond analysts' forecasts, despite the acceleration in the derisking strategy which involves the disposal of non-performing loans and the reduction of non-performing loans . The "core" turnover of the bank led by Giuseppe Castagna rose to 968 million, hitting the best figure since 2018. The operating margin recorded an increase of 51,4% to 484 million.
Bper is also in evidence (+1,95%). Banca Generali closed the session slightly down (-0,46%). Mediobanca Securities confirmed the neutral recommendation and the target price at 30 euros, after the data on net inflows in April. “The company is on track to meet our full-year estimates for total inflows,” the analysts said. Intesa Sanpaolo +0,77%.
ANALYST REWARDS CNH. FOR AKROS IT'S BUY
In the light of Cnh Industrial (+4,42%), in the wake of the positive comments of analysts after the accounts for the first quarter. Banca Akros raised the target price of the stock from 15 to 17 euro, confirming the buy rating. Tenaris (+1,83%) and Campari (+0,92%) also remain in the top ten of the list. The utilities raise their head again. Leonardo (+1,07%) and Generali (+1%) are up.
LATIN AMERICA BRAKES ENEL
Utility purchases: A2a gains 1,1%, Terna 0,92%. Enel (-0,27%) closed the first quarter of 2021 with revenues of 17,107 billion euros (-14,4% year on year) due to a mix of factors ranging from the lower trading activity of thermoelectric generation in Italy and Spain to the negative exchange rate effect in Latin America.
TIM COLLAPSES: SOLE MANAGER AT HIGH RISK, EXPOSED TO CONSOB
Among the worst, Recordati (-3,03%) and Ferrari (-2,8%) fell sharply after the quarterly accounts. But the worst title was Tim (-5,5%), drowned by the indications arriving from Brussels: in the Pnrr the Government seems to have definitively set aside the hypothesis of an integration between Open Fiber and the Telecom structure. Yesterday the company presented a complaint to Consob against the dissemination of the news.
