SOS, RECESSION COMING WITH US QUARTERLY
IN MILAN 39 BLUE CHIPS IN RED: PIRELLI IS SAFE
Given after given Corporate America's optimism crumbles. The caution has infected, hour after hour, even the European lists: in Milan the FtseMib index drops by 1,81%, to 15.578, more than Madrid -1,37% and drops of more or less the same extent characterize the indices of London -1,43%, Paris -2,18% and Frankfurt -2,03 %. In red also Wall Street: The Dow Jones falls 1,18%, the Nasdaq falls 1,02% and the S&P 500 is down 1,14%.
Quarterly reports are pressing on the markets. DuPont -7% US chemical giant closed the third quarter with earnings per share of 32 cents against a forecast of 46 cents. Revenues stood at 7,4 billion dollars, against the 8,15 billion estimated by the market. To deal with the contraction in demand, DuPont has announced a cut of approximately 1.500 jobs over the course of 12-18 months.
During the day, pessimism was fueled by UPS, the global logistics giant and thermometer of the global economy, which reduced its profit estimates for 2012, despite having met its expectations for the third quarter. United Technologies Corp also reported a 3,3% drop in earnings and cut its 2012 sales estimates. Same music for 3M which revised 2012 profit estimates as Texas Instruments: a bad sign for Stm - 3,16% who will release the accounts overnight.
The only positive note comes from Apple which will launch today a new tablet, smaller and cheaper. Some say it's the biggest move since the iPad debuted two years ago.
The storm for Europe, for once, does not arise from sovereign debt problems. On the contrary, the near-calm on government bonds in the Eurozone counterbalances the storm on equity markets. The yield of the ten-year BTP is equal to 4,76%, spread at 320, up by 15 basis points compared to yesterday evening.
This morning's Spanish auction closed well, although it must be noted that there were no particular criticalities given that the maturities were 3 and 6 months, Placed 3,53 billion euro against the maximum 3,5 billion indicated by the issuer. Six-month yields down to 2,023% from 2,213% at the September auction.
The words of Salvatore Rossi, general manager of Bankitalia, do not help Piazza Affari, according to which the target of a 2012% deficit/GDP for 3 is not taken for granted. According to Rossi, it might be prudent to envisage limited corrective measures in the spring in order to reach the structural break-even target also in 2013.
THEeuro it is down slightly against the dollar to 1,300 from 1,3024 at yesterday's close.
Raw materials are also weak: the Brent it is the sixth consecutive drop with -0,8% to 108,6 dollars a barrel, gold drops 1% to 1.710 dollars, the lowest since the beginning of September.
Among the Milanese blue chips, all in sorro except Pirelli, the fall of Finmeccanica stands out, down by 3,71% after the news of the arrest for corruption of former commercial director Paolo Pozzessere.
Strong decline also for Fiat -2,2%, after Société Générale confirmed the sell recommendation and cut the target price to 3,5 euros. Paris, reports the Financial Times, is about to rush to the rescue of Peugeot with an injection of 5-7 billion in favor of the financial arm of PSA. It is the most massive aid for the car since 2009. The French government is proceeding in the opposite direction to what was suggested by Sergio Marchionne. One more problem especially if the wedding between Psa and Opel is proceeded on these bases.
Also lowered the target of Mediaset -4,21%: from 1,30 to 1,25 euros, reduced recommendation. L'Espresso drops by 3,2%, Mondadori -2,5%.
Banks are also down: Unicredit lose 1,86%, Understanding -2,14% Mediobanca -2,1%.
Strong decline also for luxury stocks pushed down by the fall in Mulberry's accounts: Ferragamo -4,33%, followed by Tod's -3,22% and Cucinelli -3,9%.
The only blue chip on the upside is pirelli, which gains 0,6% thanks to the good results announced by its competitor Michelin, up 5%.
Bounce holding Camfin + 5,8%.
Impregilo -0,13% almost unchanged, thanks to the prospect of compensation to the companies that worked to design the Messina Bridge, a work that was later shelved. Impregilo, leader of the consortium that was awarded the construction of the bridge, should receive 135 million.
