One number out of all marked yesterday: 3,003%. For the first time since January 9, 2014, the 10-year Treasury yield has crossed the psychological threshold of 3%. It is the confirmation that the markets have grown expectation of a rise in inflation and, consequently, of a faster-than-expected rate hike, news that in turn falls in the midst of a more mixed US quarterly campaign than expected: company accounts remain bright for now but the rise in costs is accelerating. And many corporations, following the example of Caterpillar (-6,7%), the thermometer of the health of US exports, point out that "the best is behind us".
Dow Jones -1,74%, on the fifth consecutive day of decline, S&P 500 -1,34%, again below the level of the beginning of 2018. Nasdaq -1,7%.
Massive losses of the big names in technology: Facebook -3,7%, Alphabet (formerly Google) -4,77% affected by the sharp increase in costs that emerged from the quarterly which overshadowed the good performance of the turnover.
Apple also fell (-1,39%): the results of Corning, the company that supplies iPhone lenses, confirmed the slowdown in smartphone sales. In addition, the Apple group will pay 13 billion dollars to the Irish tax authorities as requested by the EU.
The more traditional economy is also suffering: in addition to Caterpillar, Lockheed Martin, one of the Pentagon's major suppliers, also expects results to decline between now and the end of the year.
WEAK ASIA, BITCOIN RAISES ITS HEAD
Same situation this morning in Asia. The worst place is Taiwan, hit by the chip crisis. The Nikkei index in Tokyo falls by 0,7%. Pharmaceutical Takeda loses 9% after Shire, Ireland, approved the proposed sale for $65 billion. The CSI 300 index of Shanghai and Shenzhen stock indexes is down by 0,3%. South Korean Stock Exchange -0,9%.
The yen drops to 109,1 against the dollar: it is the sixth consecutive day of decline of the Japanese currency. The rupee dollar cross is at its highest level in the last 14 months. The euro instead does not let itself be crushed by the dollar: cross at 1,222. Bitcoin raises its head this morning to 9.440 dollars on the sixth day of rising.
MACRON SLOWS DOWN THE RACE OF OIL
Two-sided day for oil. Brent first broke the $75 barrier for the first time since November 2014, only to reverse the trend after the start of talks between Donald Trump and Emmanuel Macron: the French president is trying to dissuade the US from denouncing the nuclear deal with Tehran.
Thanks to last month's run, the year-to-date performance of oil stocks ranks first in the global Eurostoxx index: +11% versus +0,9%.
FINANCIAL CHARGES BALLAST SAIPEM (-2,9%)
However, Saipem falls back, -2,89% from +0,9% in the morning after the announcement of quarterly accounts from which emerged a much worse result than expected (11 million euro) due to high financial charges. Revenues at 1,91 billion euros, slightly below the consensus (1,96 billion). Adjusted operating profit €100 million, 10% above the average analyst estimate. Debt at 1,2 billion euros, 150 million euros less than expected. The company confirms its 2018 targets: revenues of 10 billion euros with an Ebitda margin above 10%. Eni -0,3%, Tenaris +0,6%,
MILAN, THE 2018 EARNINGS RISE TO 10%
Yesterday the script of the vigil was repeated. The European stock exchanges, after a cautious start, have gained speed: the markets are betting that the ECB will not take "hawkish" decisions in tomorrow's meeting.
The FtseMib index (+0,22%) closed at 24.035 points, having touched the highest value since July 2015 at 24.073 points during the afternoon. The performance since the beginning of the year is close to +10%, while in the same period the Eurostoxx index is at parity.
Paris closes with slight progress (+0,1%) on the day of still by Vincent Bolloré: the share of the parent company recorded a drop of 6,14%, Vivendi -2,12%.
The other Eurozone markets were in the red: Frankfurt -0,17; Madrid -0,39%. Earnings London (+0,36%).
On the macro front, Germany's Ifo index came in at 102,1 points in April, disappointing economists who had forecast 103.
THE BUND RISES, THE SPREAD IS NARROWING
The pressure on US rates is reflected in particular on the German Bund, which on Reuters screens reaches the maximum of the last six weeks with a peak of 0,655%. The BTP closed with a yield of 1,77%.
Hence the further narrowing of the Italy/Germany spread, again on the ten-year stretch, down to 114 basis points on the lowest since August 2016.
In the morning, in the first appointment with the month-end auctions, the Treasury has in the meantime placed the maximum amount of 3,75 billion between indexed Ctz and Btp, with the gross rate on the zero coupon bond slipping to its lowest since November.
Six-month Bots for 6 billion (similar amount due) will go to auction on Thursday. On Friday at the medium and long-term auction, the Treasury will make the amount of 7,75/9,25 billion available to investors between the new Ccteu September 2025 and the reopening of the 10-year reference bonds.
THE STOP OF BOLLORÉ WEIGHTS ON TELECOM
The Telecom Italia assembly and, in a certain sense, that of Mediaset was also conditioned by the news of the arrest in Paris of Vincent Bolloré.
Telecom Italy -2,37%. The first round of Tim's shareholders' meeting ended in favor of Vivendi: more than 97% of shareholders decided to support the appointment of Amos Genish. The Israeli manager will therefore lead the company at least until May 4 when the entire board will have to be renewed. At the top of the board of statutory auditors, against Vivendi's wishes, Roberto Capone was confirmed. Surprisingly, the shareholders' meeting did not approve the assignment of the 2019-2027 audit assignment to EY and Kpmg.
Mediaset -1,18%. Without the extraordinary costs for the Vivendi case, the Biscione returns to produce margins and profits. Consolidated revenues down by 1%. Costs cut by 11%. The debt rises to 1,39 billion. Premium's contribution drops to 587,4 million
ITALIAN BANKS AT THE TOP SINCE 2015, RECORD PRICE FOR GENERALI
The banking basket ended trading up 0,6% to 12.620 points, the highest level since 2015 (the Eurostoxx index -0,6%). Since January 15, the index of Italian banks has gained 0,5%, much better than the rest of Europe (+XNUMX%). The performance is linked to the stability, for now, of the "Italian system" despite the uncertainties of the political situation and above all to the more comforting news than expected arriving on the non-performing front.
The Bigs are on positive ground: Intesa San Paolo (+0,87%) and Unicredit (+0,35%). Better Ubi Banca (+0,95%).
Bper Banca goes against the trend (-1,82%): the market, suggests a trader, fears a capital increase due to the reduction of NPLs. Banca Mediolanum also falls -1,36% weighed down by the announcement that the finance police has launched an investigation on the tax treatment of Irish domiciled funds.
Bought insurance: Generali +0,83% in the final marked a quotation on the highest since January 2016 at 17 euros. UGF +0,89% and UnipolSai +0,74: the 3% stake in Carige was sold.
Also noteworthy in the fashion sector is the strong rebound of Salvatore Ferragamo (+3,93%). In Moncler's wake: +2,18%.
STM, GROSS MARGIN RISES TO 39%
Among industrialists, Stm recovers: -0,9% from the initial -4%. The Italian-French jv has absorbed the impact of the warning launched by Ams, one of Apple's suppliers, on 2018 revenues: they will be lower than expected as there is a drop in demand, probably due to the not brilliant performance of the iPhoneX . Apple is worth about a tenth of Stm's revenues.
First quarter accounts were approved tonight: revenues at $2,23 billion (+22,2%); gross margin and operating margin up year-over-year, to 39,9% and 12,1% respectively; net income of $239 million, a year-over-year increase of $131 million; cash dividend of $0,24 per common share to be distributed in equal quarterly installments.
IMA PROMOTED, AMPLIFON AT HISTORIC HIGH
Among the mid caps, Ima is up 4,23% after the announcement of the acquisition of Tnc, a producer of paper handkerchiefs. Equita Sim and Kepler Cheuvreux have raised the target price after the acquisition of Tmc and confirmed the buy recommendation.
Fiera Milano +4% on the eve of returning to the Star index. Geox Leap (+5%). Amplifon +2,2%, new historical record.
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