Donald Trump has failed this time to instill optimism in Wall Street and Asian stock markets, skeptical of the president's revelations about Beijing's willingness to negotiate on tariffs. But a tweet from the president nonetheless left its mark: “Conte fully represented Italy at the G7. He loves his country very much and works well with the US. A very talented man who I hope will remain prime minister. So the White House tenant blessed the possible or perhaps probable launch of the new Italian government, which has unleashed an impressive wave of debt purchases in the Bel Paese.
WALL STREET REJECTS THE TOBACCO GIANT
This was the only significant novelty amidst the smoke signals from which initiatives capable of countering the fear of recession signaled by the inversion of the US yield curve are struggling to emerge. The smoke signals are those coming from Philipp Morris and Altria, the two tobacco giants (210 billion dollars in two) who had separated to avoid fines and antitrust axes. The companies announced yesterday their willingness to get back together thanks to a merger of equals. But the news, which at other times would have aroused much more enthusiasm, was rejected by Wall Street: Philip Morris -7,76%, Altria -3,95%. Better a BTP than a Marlboro.
THE DESCENT OF THE YUAN HAS STOPPED
Asian stock exchanges are mixed. Those of Japan (Nikkei +0,1%), South Korea (Kospi +0,4%), Australia (S&P ASX 200 +0,3%) and Taiwan (Taiex +0,3%) rose . From today, the change in the legislation on commercial relations between Japan and South Korea is enforceable: relations between companies, especially those of high technology, become more complicated and more supervised by the authorities.
The Hong Kong stock market remained at parity, while the CSI 0,4 index of the Shanghai and Shenzhen stock markets fell by 300%. The Chinese government is ready to eliminate taxes on car purchases.
The descent of the Chinese currency has stopped, falling for nine consecutive sessions, to levels never seen in the last ten years or so. Once again this morning the Banca del Popolo made its presence felt, indicating a fixing value lower than the operators' expectations, at 7,08, compared to 7,11.
The dollar/yen exchange rate goes back to 105,8. The exchange rate has moved away from the lows from the beginning of the year at 104,5, but is struggling to recover, as few dare to open Carry Trade positions. The change in the legislation on trade relations between Japan and South Korea is effective today.
Few ideas yesterday for Wall Street: the Dow Jones falls by 0%, S&P 48 -500%. NASDAQ -0,33%.
US MARKETS WEAK COUNTDOWN TO NEW DUTIES
The markets are looking with concern at the September 1 deadline, when the new tariffs on Chinese imports will take effect.
The yield on the ten-year US bond is 1.4761%, against 1,5159% on the two-year bond: it is the most profound inversion of the rate curve since May 2007, on the eve of the subprime crisis.
Gold slows down to 1.538 dollars an ounce close to the highs in dollars of 2011. But in euros the barrier has already been abundantly overcome: in 2011 the euro was worth 30% more.
Oil up 1,02% to 55,49 dollars a barrel.
FLY PLACE OF BUSINESS. EU AND WHITE HOUSE FOR COUNT BIS
Donald too. Matteo Salvini, who had hoped in vain for an invitation to the White House, had to chew bitterly upon reading President Trump's tweet promoting Giuseppe Conte who undoubtedly enjoys the support of Ursula von der Leyen in Europe of whom he was great (and decisive) voter. Even so, the race for government bonds of the Bel Paese that marked the financial day is justified.
The euro is weak at 1,1008 against the dollar held back by the final data on German GDP for the second quarter, according to data from the statistics office it fell by 0,1%, in the final estimate, due to the drop of 1,3 % in exports.
TOP BANKS AND UTILITIES
Piazza Affari, thanks to the push of banks and utilities, has led the race of European lists. The index, constantly accelerating, closed just a step away from 21 points (20.991) thanks to an increase of 1,52%.
The other Eurozone markets are more cautious but still positive: Paris +0,67%; Madrid +0,56.
GERMAN GDP HOLDS BACK, TAX INVESTIGATION ON FRANKFURT
Frankfurt +0,59%. On orders from the German judiciary, the offices of Deutsche Boerse were searched today as part of a broader investigation that hypothesizes the creation of a fraudulent stock trading scheme.
London, after Monday's public holiday, instead started off again with a slight decrease, -0,11%. The euro/sterling exchange rate fell to 0,905, returning to the levels seen at the beginning of July. Jeremy Corbyn meets today in London the representatives of the other parties who intend in every way to oppose the divorce from the European Union without agreements even with a vote of no confidence in the government. Parliament will resume work next week after the summer break.
A field day for Italian debt securities, in the middle of the buying spree in the afternoon.
THE BTP AT 1,13% CLOSE TO THE HISTORIC LOW
The BTP flies, the yield falls to 1,13%, -18 basis points, the lowest since the end of 2016 and close to the all-time record (1,04% on August 12 three years ago).
The spread with the 182-year Bund narrows to 23 points, the lowest since May XNUMX last year.
The spread with the Spanish Bono drops to 103 basis points, a level never seen in the last fifteen months.
TARGET FOR THE SPREAD: 175 SHARE
Futures on the ten-year BTP jump by more than two figures, by about two points for the same ten-year August 2029 and by over four full points for the thirty-year one.
The drop of more than 20 cents in the spread between the Italian thirty-year bond and the equivalent bund is impressive.
The flattening out of the curve both on the 2/10 year segment and on the 10/30 year segment is particularly striking.
The next symbolic target for the Bund spread is 175 basis points, close to the summer 2016 record.
SUPERSTAR BANKS, SAIPEM THROUGH THE STARS
Banks galloping following Banca Bper (+4,53%) ahead of Banco Bpm (+3,29%), Unicredit (+1,35%) and Ubi Banca (+1,92%).
The flight by Saipem (+3,1%) stands out in the list. The American franc TechnipFMC (+2,8%) announced the spin-off of a major part of its assets. Following this operation, two distant companies were born, focused on different sectors. In this context, it could be easier for Saipem to continue the divestitures that have been talked about for some time. Eni +0,7%
Utilities are also clearly visible: Enel +2,3%, Snam +2,7%.
FERRARI ALSO RUBBER, JUVENTUS SUFFERS
The automotive sector was positive: Fiat Chrysler +1,2%, Pirelli +1,7%, Ferrari +2,98%.
Leonardo (+2,79%), Campari (+2,86%) and Recordati (+2,68%) were also highlighted.
There are only three negative blue chips: Juventus (-1,38%), who are in the black jersey for the second day in a row, Azimut (-0,43%) and Moncler (-0,12%).
MEDIASET, TODAY THE JUDGE DECIDES ON VIVENDI
Stale Atlantia (+0,09%) waiting to understand what will be the developments on the motorway concessions after the possible formation of a new M5s-Pd government.
Mediaset was also weak (-1,28%). Today the judge will decide whether admit or not Vivendi to vote in the meeting of 4 September on the reorganization of the group.
Trevi (+20,15%) flies to the rest of the list after the Trevisani family presented a hypothesis of adhesion to the agreements for the implementation of the financial maneuver on Friday.
