Between July and September, the combined revenues of Google and Microsoft exceeded $110 billion, an increase of 33%. This number is enough to confirm that the big winners of the pandemic season were the "cloud" services of the Redmond giant (up 36% in a quarter) and online advertising: Alphabet doubled its profits for the quarter on the highest turnover of the past 14 years. To complete this ranking from the Guinness Book of Records, only the accounts of Apple and Amazon are missing, arriving tomorrow. The forecasts are rosy, even if Amazon puts its hands forward: it will be difficult to do better than a year ago, when, in full lockdown, home delivery revenues more than doubled in a quarter.
The extraordinary strength of the technology giants (only Facebook suffers) is enough to guarantee new highs on the markets, not just the USA. But the bull is held back this morning by the increase in inflation, which is growing almost everywhere, from the Eurozone to Australia. This will be discussed tomorrow at the ECB, where probably even the doves will have to revise upwards the estimates on the increasingly less temporary increase in prices. Who knows, it could be an opportunity to let the Bull rest after ten days of unbridled racing.
THE USA WITHDRAWS THE LICENSE OF CHINA TELECOM
This morning the Bloomberg Apac index, one of the references for the Asia Pacific area, is down by 0,2%. The largest decline is that of Hong Kong's Hang Seng. Hang Seng Tech, the sector index where Alibaba, Tencent, Meituan and all the other high-tech giants are located, lost more than 3%.
CSI 300 of the Shanghai and Shenzen price lists -1,2%. In addition to the real estate problems, the slap of the US Federal Communications Agency has taken away the license of China Telecom.
In China, fears about the resurgence of the pandemic are growing: there is the risk that the new wave will jeopardize the Winter Olympics (100 days to go). The Nikkei of Tokyo (-0,5%) and the Kospi of Seoul (-0,8%) are also slowing down. The unexpected jump in inflation in Australia, to a six-year high, pushed the Australian dollar higher.
WALL STREET SLOWS DOWN IN THE FINAL. MICROSOFT +1,3% LATER
The US Stock Exchanges are still positive: Dow Jones +0,04%, S&P +0,16% Nasdaq +0,06%. The three main stock market indexes remain very close to their historical highs, but at the lows of the session.
Microsoft (+1,29% after the Stock Exchange) set a new record in terms of profit, reaching 20,5 billion dollars, better than expected. Thanks to the increase in the revenues of the cloud area (+4 billion compared to the same period of the previous year), the total turnover has increased in an astonishing way to 45,3 billion dollars. Not only the data for the quarter, but also the indications for the remainder of the fiscal year beat expectations.
ALPHABET IN RED DESPITE RECORD ACCOUNTS
Alphabet, which also crumbled the expectations of analysts, in the aftermarket put the gear back (-0,24%). Net income rose to $18,9 billion, up $2,5 billion from a year earlier. Operating margin increased to 32%, from 24%. The only shadows, in a more than flourishing income statement, are in the cloud area, where revenues have risen less than expected.
In the aftermath of the stock market, Twitter rose sharply. The company said the new privacy rules Apple introduced to the iPhone ecosystem had minimal negative impact.
Robinhood lost 7,5% after the stock market: platform users surprisingly drop.
AT THE US CONGRESS WE TALK ABOUT TAXES
In the United States Congress we talk about taxes. Three Democratic senators have introduced a bill requiring companies with earnings exceeding $15 billion to pay at least XNUMX% to the tax authorities, regardless of whether they qualify for tax relief.
The Treasury Note moved little, at 1,63%. The euro dollar is stable at 1,160. WTI oil was down 0,7% to $84 a barrel. Gold loses 0,3%, to 1.787 dollars an ounce.
EU, PRICES INCREASE TO THE HIGHEST IN SEVEN YEARS
The race in share prices also continues in the Old Continent, where, moreover, inflation expectations in the Eurozone for bond market investors have reached new seven-year highs. Two days after the ECB board meeting, the five-year inflation swap rate rose to 2,0509%, above the central bank's targets. In short, the market expects rates to rise, in line with the American tapering and the indications of the Bank of England. But it is highly unlikely that Christine Lagarde will give in to the pressure. If anything, as noted by the Algebris staff, “the ECB will have to communicate more clearly its intention regarding the purchase programmes. This means giving greater clarity on when purchases could start to decline more significantly and also on the type of program that will prevail once the PEPP expires in March. Overall, therefore, tomorrow's meeting shouldn't bring great news, but communication will need to be clearer.
SPREAD TO 111 POINTS, BOT AUCTION TODAY
The surge in inflation expectations has been felt on bond prices. The yield on the ten-year BTP rises to 0,99% (+3 basis points), the Bund trades at -0,13%. Yesterday, Germany placed 2,36 billion in a 7-year Bund. The spread widens to 111 basis points, the highest in the last four months.
The Treasury kicked off the month-end auction round yesterday by placing the maximum total amount offered of 3 billion euros in short BTPs and 30-year BTPEIs. Today, 6 billion six-monthly BOTs will be on the plate, while Thursday – in the most awaited appointment of the medium/long-term issue – securities up to 7 billion will be available to investors, including a new ten-year bond.
BUSINESS PLACE HOLE QUOTA 27 THOUSAND
The magical moment of Piazza Affari continues: +0,58% to 26.970 points. During the session, the index exceeded the 27-point level several times. Since the beginning of the year, the performance of the FTSEMIB has increased to +21,50%, in line with the Cac of Paris (21,60%), but double that of the Ibex of Madrid (+11,30%) and better than that of the Dax of Frankfurt (+14,70%). The Eurostoxx 50 index is at +18,70%. The best place yesterday was Madrid, up 1,14%. There are also purchases in Paris and Frankfurt, which gain 0,83% and 1% respectively.
L'ORÉAL SALE, SAP RUNS
In the wake of the rise in estimates by Interparfum, which produces the perfumes of Jimmy Choo, Lanvin, Coach and MontBlanc, the share price of L'Oréal rose by 2%.
Deutsche Post (+1,8%) and Sap (+2%) stand out on the Dax. The German government has reduced its growth forecasts for Germany for the current year to +2,6% compared to April, when GDP growth was forecast at +3,5%. For 2022, the government expects growth of +4,1%, compared to the current forecast of +3,6%.
THE CITY AT THE TOP, RECKITT BENCKISER +6%
Outside the EU, London is up (+0,76%) on new highs since February 2020. Among the best performances in Europe, that of the Englishman Reckitt Benckiser (+6%): the household products company has raised its estimates of revenues for the year, due to the very positive performance of the third quarter.
BREMBO, PIRELLI, FERRARI: SUPERSTAR CARS IN MILAN
In great evidence the auto sector. Departure from the Grand Prix for Ferrari, which at the opening scored an all-time high at 208,50 and then slowed down to close at +0,40%. Analysts are optimistic ahead of the November 2 quarterly.
Brembo is racing (+2%), which presented a new intelligent braking system based on artificial intelligence on Monday.
Pirelli is also in excellent form, +2,5% on the day of the Michelin accounts: Equita confirmed its buy rating with a target price of 6,2 euros and increased the share's weight in its main portfolio.
Stellantis also did well (+0,6%) in view of Thursday's quarterly report. Positive Stm (+1,46%) before the advice on the accounts in the late evening. Among industrialists, Interpump also performed well (+2,21%).
CAMPARI, BENEFIT TAKES ON HIGHS
Contrasted Campari. Following the publication of the excellent results for the quarter, the stock reached an all-time high and then rapidly retreated on the wave of profit-taking. The queen of Aperol spritz closed at -4,2% after closing the first nine months with net sales of 1,58 billion euros, up 27,3% on an organic basis (+22,9% the change total) compared to a year earlier and by 24% compared to the same period of 2019. Adjusted Ebit is 359,8 million (+54,2% on 2020 and +31,7% on 2019). In the third quarter alone, net sales grew by 12,8% (+27,3% compared to the same period of 2019), while Ebit by 16,2% (+29% compared to 2019). Adjusted net income before taxes increased 56,1% to $343,3 million.
SOCGEN REWARDS INTESA, HOLDS BACK THE COLLECTION OF ASSETS
The bankers are subdued: Banco Bpm moves little, Unicredit and Mps recover, protagonists of the failed marriage. On Intesa Sanpaolo (+0,75%): SocGen raised the target price to 2,6 euro from 2,45 euro, confirming the hold rating.
Cattolica (-0,2%) is approaching the offer price launched by Generali. Money on Banca Mediolanum (+1,5%) despite Assogestioni data showing a slowdown in asset management collection in September. Poste (+1,32%), Azimut (+1,21%) and Banca Generali (+1,06%) performed well among the stocks in the sector.
BRAZIL SUPPORTS TIM
Tim grew (+1,07%) after the results of the Brazilian company. For analysts, the accounts of the Latin American subsidiary are consistent with the guidance and confirm the good performance of the business.
ITALIAN SEA LAUNCHES THE OFFER ON PERINI NAVI
The Italian Sea Group presented an irrevocable proposal to the delegated judge of the Court of Lucca for the purchase of the entire business complex of the Perini Navi bankruptcy for a price of 47 million. Saes Getters +5,7%.
MONDADORI IS SALE GRAZIA INTERNATIONAL
Mondadori (+2,4%) is negotiating the sale of Grazia International. Safilo +6%. Esi +10% after the 25,3 million euro agreement for the construction of six photovoltaic plants.
