The Varoufakis meteor goes out in the skies of Athens. Apple's star continues to shine brighter than ever after announcing better than expected results after closed exchanges. Here are the drivers which, pending the outcome of the Fed meeting, dominate the attention of the markets. Asian stock exchanges, already at their highest levels since 2008, continued their rise, driven by Apple: the Asia Pacific Stock Exchanges +0,2%, Tokyo +0,6%.
Down Wall Street, which closed its doors before the Apple accounts: S&P 500 -0,41%, Dow Jones -0,23%, Nasdaq -0,63%. The European lists are effervescent, under the pressure of the downsizing of the role of the Greek finance minister, Yanis Varoufakis. In Milan, the Ftse Mib index closed up by 1,6%, the Paris Stock Exchange rose by 1,3%, Frankfurt +1,9%. The increase also London +0,5%. The improvement on the Athens front was also reflected in the euro which in Asia reached a high of 1,0927.
MORE IPHONES SOLD IN CHINA THAN THE USA: 200 BILLION TO APPLE MEMBERS
The explosive growth of iPhone sales in China and other Asian markets has allowed Apple to beat analyst forecasts for the fifth time in a row. The turnover for the quarter thus shot up to 58 billion dollars (+27%) against the 56 expected. Even profit (13,6 billion) was better than expected: 2,33 dollars per share against the estimated 2,16.
The positive notes that allowed the stock to rise to 134 dollars in the after hours also include the decision to increase the amount to be distributed to shareholders from 130 to 200 billion dollars between now and 2017 thanks to buybacks for 50 billion and coupons up 11 per cent. Since yesterday Apple, overtaking Exxon, is the company that pays the most dividends on Wall Street.
These results are explained by the formidable growth of iPhone sales in China: 16,8 million units in the quarter, +72% compared to a year ago, with sales overtaking the United States. "I have never seen such rapid and overwhelming growth of the middle class as in China," commented CEO Tim Cook. And, as the middle class grows, so do the sales of the Apple: the Chinese market has thus overtaken Europe. And so analysts' concerns about the impact of the strong dollar against the euro have proved excessive.
ATHENS TAKES A STEP BACK ON THE MINIMUM WAGE
Euclid Tsakalotos, an economics professor trained at Oxford, is the new head of the Athens delegation in negotiations with the European Union. A welcome change for the Eurogroup which welcomes the downsizing of Yanis Varoufakis, the exuberant minister accused in Riga of being an "amateur".
According to the German Bild, the novelty allowed the first steps forward in the technical negotiations resumed yesterday to avoid the increasingly concrete risk of default in Athens. In particular, the Tsipras government has allegedly abandoned the idea of proceeding with an imminent increase in the minimum wage. "I don't know the terms of the reshuffle well - commented the vice president of the ECB, the Portuguese Victor Constancio - but I am confident that an agreement will be reached".
BOT AUCTION: NEGATIVE RATE FOR 6 MONTHS IN VIEW
The turnaround in Athens has given new life to the sovereign debt market. Naturally, the European periphery benefits from this, together with equity lists. The BTP/Bund spread, which started in the morning from 130 basis points to reach a maximum of 133,3, fell to the 127 area. The 6-month BOT auction is being held today in this context.
Judging by the price trend yesterday afternoon, it could be the first with negative yields on this maturity, in imitation of what has already happened in Spain, which issued six-monthly Letras at negative rates on 7 April. In March, the 0,04-monthly BoTs were placed at auction with a gross yield of XNUMX%.
THE EXPANSION: MEDIASET IS IN VIVENDI'S SIGHTS
Numerous stock issues animated the session on European stock lists. Among these, the Vivendi effect stands out, the Parisian media giant that makes no secret of wanting to use the formidable cash available (11 billion euros) to go shopping in the European media. Starting from Italy where the company chaired by Vincent Bolloré will soon be the number one shareholder of Telecom Italia (yesterday -1,9%).
This explains the leap of Mediaset (yesterday +8,4%), considered potential prey after the French economic newspaper L'Expansion confirmed the interest of the French conglomerate in the company controlled by the Berlusconi family. The Parisian newspaper specifies that Bolloré will address these potential acquisitions at the Vivendi supervisory board meeting scheduled for May 12.
According to Mediobanca analysts, a consolidation process is about to begin in the European media sector. In a report released this month by the Milanese bank, we read: “We believe that Mediaset could represent an interesting strategic option for Vivendi, being a media & content group, which would allow the French to enter the Italian market directly where Vivendi will be the main shareholder of Telecom Italia with 8% of the share capital”.
THE CAR CELEBRATES THE TURNOVER IN VOLKSWAGEN
A day of robust increases for the European industry, driven by the leap forward in the automotive industry (+2,5% the Stoxx sector index). Fiat Chrysler rose 2,4% ahead of the board meeting on April 29th. But the real news is the market's positive response to the turnaround at Volkswagen after the resignation of President Ferdinand Piech, who thus acknowledged the victory of his opponent, CEO Martin Winterkorn.
Since Sunday, the second largest car manufacturer in the world has been chaired by Bertholdt Huber, former president of the Ig Metall trade union. On the Frankfurt Stock Exchange, the big three closed sharply higher: Volkswagen +5,3%, Daimler +2,7% and BMW +2,3%. The other stocks in the manufacturing sector were positive in Piazza Affari: Finmeccanica gains 1,4%, Prysmian +2,6%. Stm also up +1,5%.
SAIPEM SUPERSTAR. TODAY THE ACCOUNTS OF ENI
Sharp rise in oil prices on the eve of Eni's quarterly (+2%). Saipem in particular rose (+6,6%, +40% from the beginning of the year) after the release of quarterly data. Net profit rose to 77 million from 61 million in the same period of 2014 (+26%), Ebit marks an increase to 159 million from 127 million (+25%).
Conversely, the acquisition of new orders slows down to 2,399 billion from 3,9 billion in the same period last year and the net debt has risen to 5,193 billion from 4,424 billion as at 31 December 2014 due largely to the change in exchange rates. Among the weak utilities Enel (-0,1%), having difficulty in selling its assets in Slovakia due to the opposition of the local government.
ITALIAN BANKS IN THE RACE. DEUTSCHE BANK SINKS
Yes day also for the Italian banking sector, impervious to the sharp decline of Deutsche Bank -4,59% after the presentation of the accounts and the new industrial plan. Banca Intesa (+2,6%) rises on the day of the meeting: in the first three months of the year the institute disbursed 8 billion in loans (half in March). UniCredit +2,1%. Pop.Milano (+1,9%) and Mediobanca (+3,5%) also advanced.
In asset management, Mediolanum made a great leap +4,6%, rewarded by Banca Akros with the increase in the rating to accumulated pending the accounts, on the agenda for 29 April. Among the insurance companies, it is worth noting the awakening of Generali +2,5% (-3,3% last week): Jefferies analysts have lowered the target price on the stock to 17 euros from the previous 17,70 euros, confirming the opinion hold.
MEDIUM CAP: D'AMICO AND SALINI ADVANCE
In the rest of the list, it is worth noting the retreat by Ferragamo - 2,4%, victim of the downgrade of Equita which cut the recommendation to Hold da Buy. HSBC adjusted the target price to 32 euros, 5 euros more than the previous indication, Hold recommendation.
Salini Impregilo +5% after the news of a maxi order in Papua New Guinea. D'Amico +3,7% after the announcement that the company has entered a new product tanker segment with the contract for the construction, at the Hyundai shipyard in Korea, of two new modern "Long Range" vessels expected to be delivered for mid-2017 for a total investment of approximately $44 million each.
