Chinese prices slow down more than expected (+1,3% on an annual basis), confirming that the battle against deflation is by no means won. The Shanghai Stock Exchange (-0,4%) reacts at the opening with a contained decrease: the market continues with new expansive measures. Tokyo (-0,6%) and Hong Kong (-1,4%) are also down.
The collapse of Wall Street influenced the markets, attributed in part to the slowdown in China, in part to the first reactions of the markets to the next increase in US rates, which will not be at all painless for emerging markets: in Friday's session alone, Brazil spent more than a billion dollars to support the real.
In New York it was the worst session in the last six weeks. The S&P 500 index lost 0,98%, Dow Jones -1% (again below January levels), Nasdaq -1,01%. Meanwhile, the season of quarterly reports is coming to an end: compared to 12 months ago, profits are down by 0,9%, much less than forecasts (-4,2%). The dollar is unchanged at 1,076 against the euro.
THEY HOLD TENARIS AND SAIPEM
The crude oil market has not been influenced by the statements of Abdullah al-Badri, OPEC secretary general, who today said he sees strong demand for next year: Brent - 0,4%, Wti - 1,3% . The Energy Index -1,4% was the worst on Wall Street.
Eni fell in Piazza Affari (-1,3%), but the other oil companies rose, the only ones in the main basket: Tenaris +1,1% and Saipem +0,9% in view of the possible sale of Infrastrutture Italia. Saras advances by 3,2%.
WEAK EUROPE. SPAIN AND PORTUGAL IN FERMENT
The prospect of a rise in short-term interest rates in the USA has depressed the stock markets in Europe. In Milan, the FtseMib index closed the session down by 1,8%, the Paris and Frankfurt stock exchanges fell by 1,3 %. The political events in the Eurozone contributed to fueling the nervousness.
In Portugal, the left-wing oppositions have agreed on a program and therefore in all probability Coelho's centre-right government is destined to be disheartened. In Spain, the Catalan local government has passed resolutions towards a declaration of independence. At this point the word passes to the Constitutional Court, which should declare the decisions voted illegal, and possibly also suspend the local Parliament. Lastly, the Eurogroup did not release the two billion tranche of loan to Greece.
5,5 BILLION BTP AT AUCTION. THE ECB READY TO MOVE
The yield on ten-year BTPs reached 1,73%, its highest since the end of September, before falling back to 1,715%. The Btp/Bund spread stood at 100 points. Tomorrow the Treasury auctions will start: we start with the offer of 12-month Treasury bonds (6 billion). On Thursday it will be the turn of medium-long term securities: the Ministry of the Economy will make available to investors an amount between 4 and 5,5 billion euros in 3, 7 and 30-year BTPs.
According to the Reuters agency, the Governing Council of the ECB is considering a robust package of measures. There would be 20 options under examination, including, in addition to a strong expansion of Qe, the increase in negative interest on the deposits of banks that park their funds near Frankfurt.
UTILITIES SUFFER, THUD OF ATLANTIA
In Piazza Affari the strongest losses were those of utilities, structurally highly indebted companies, which risk suffering if interest rates increase. The Stoxx index for the sector fell by 2,1%. Enel closed down by 2,7% and Enel GP -1,7%. A2A has presented a binding offer to the shareholders of Linea Group Holding for the creation of an industrial partnership which provides for A2A's entry into the capital of the multi-utility with 51%.
Atlantia was also down sharply (-4,4%): the Benetton holding company, active in the management of motorways and airports, surprised the market by announcing that it no longer intends to sell a part of Aeroporti di Roma. This morning Equita cut Hold's judgment and zeroed its weight in the portfolio of recommended stocks.
Conversely, Autogrill rose by 1,9%. In an interview with la Repubblica, the president Gilberto Benetton affirms that signs of recovery are being recorded in Italy. “Without acquisitions – he added – we would still grow, but we are not able to stand still and therefore we are looking at new opportunities”.
POSTE DOUBLES PROFITS BUT ANNOUNCES COST SAVINGS
Sharp slowdown in the final for Poste Italiane (-2% to 6,5150 euros), awaiting the quarterly data widespread in closed markets. The company closed the first nine months of 2015 with a net profit that almost doubled compared to the same period of 2014, against revenues up by 6% and an operating result that jumped by 26,9%.
However, the CEO Francesco Caio underlined that in the last quarter it will be necessary to consider two elements to estimate the results for the year: in the management of the portfolio of government bonds "realizations are lower than those averaged in previous quarters" and "the provisions to support the transformation process to be implemented in 2016”. In this regard, the press release anticipates that extraordinary actions will be defined in the fourth quarter to contain costs.
EQUITA PROMOTES TELECOM. AUTOMOTIVE IN RED
Twin discounts for ordinary Telecom Italia (-1,3%) and savings (-1,7%). After the conversion decided on Thursday by the Board of Directors which received the green light from Vivendi, Equita confirmed the Buy judgment on the group, adjusting the target of ordinary shares to 1,32 euros from 1,30 euros. The savings target is raised to 1,22 euro from 1,10 euro, or to the same level of ordinary savings by adding the 9,5 euro cents required for conversion.
Among the industrialists, a difficult day for the automotive sector: in Europe the Stoxx index for the sector closed down by 2,1%. Renault dropped sharply (-3,6%) after Paris rejected the merger of Régie with Nissan. Volkswagen -1,48%. Fiat Chrysler drops by 1,6%. Also in the red are Finmeccanica (-1,5%) and StM (-1%).
NORGES BANK, FIFTH SHAREHOLDER OF MONTE PASCHI
The banks are all in the red: Unicredit, awaiting the business plan, drops by 1,9%. Ubi Banca (-2,8%), Banco Popolare (-2,5%) and Intesa (-1,8%) are doing worse. The worst is Monte Paschi (-3,1%), which closed the third quarter of 2015 with a loss of 109 million euros, after having accounted for a one-off net impact of 88 million for the closure at the end of September of Alexandria contract with Nomura.
From the communications to Consob on the relevant shareholdings it emerges that Norges Bank has bought 2,31% of the Sienese bank's capital. The operation dates back to November 2 last year. Norges Bank thus becomes the fifth largest shareholder and ranks ahead of the Central Bank of China (2%), just behind BlackRock (2,54%). With 3,13% is BTG Pactual Europe. With shares above 4% there are only Fintech (4,5%) and the Ministry of Economy (4%).
MONCLER TRUSTS IN THE SNOW. AND ABOUT CHINA
The minus sign also prevails in the Luxury sector. Moncler -1,2%: the company has announced that the exchanges have ended the quarterly results. Revenues in the first nine months grew by 25% to 561,5 million euros, the growth is 17% calculated at constant rates. With the same number of shops open for at least 12 months, the increase is 13%. The trend in Asia improved markedly in October, China (minus Hong Kong) and Japan are doing well, said CEO Remo Ruffini in the conference call, trusting in a good winter season.
Luxottica -2,6%, Yoox Net a Porter -2,5%. Ferragamo -2,4%.
