Thirty out of thirty. Wall Street passes with flying colors the double examination of retail sales (down in May but less than expected) and producer price indices for May (+0,2%). After the first two hours of trading, in fact, all 30 blue chips of the Dow Jones were up (+1% the index). Positive signs also for the S&P500 (+1,1%) and the Nasdaq (+1,2%).
The launch of the US stock exchanges, together with the stability of the Chinese economy (+13,3% annual growth in industrial production) has reinvigorated the recovery of the Old Continent's stock markets. In Milan, the Ftse-Mib index rose by 1,2%, London +0,7%, Paris +1,4%, Frankfurt +1,9%.
The favorable outcome of the public debt auctions in Greece and Spain undoubtedly favored a calmer climate. However, the European bond market remains mixed: the yields of Spain (-1 basis points to 5,4% for ten-year maturities) and Italy (-3 basis points to 4,7%) are down, but those of Greece are up (+42 basis points to 16,9%), and Portuguese (+5 bps to 10,1%), which in the morning reached their all-time high (17,5% and 11,4% respectively). After the favorable outcome, albeit with marginally rising rates, of the Italian auction of five-year BTPs, the spread between the German 175,3-year BTP and the BTP narrows to 181 points from 3,06 at Monday's closing. The US 2,99-year government yield jumped to XNUMX% from XNUMX% yesterday.
The dollar moves little against the euro and is traded at 1,443. Insignificant movements also for oil at 97,3 dollars, gold at 1.520 and silver at 34,7 dollars.
The banking sector was able to take advantage of the calmer climate on the markets, also thanks to the outcome of the Intesa capital increase (+2,27%). There was a clear flow of money to MPS (+2,12%), Banco Popolare (+1,74%) and Mediobanca (+1,28%). Bpm is also breathing (+0,97%), while Ubi Banca remains weak (-0,79%) still engaged in recapitalization.
RATING EFFECT 1: UBS REWARDS FIAT WITH A BUY
EQUITA SIM PROMOTES EXOR STOCKS
Fiat is approaching the closing of the Stock Exchange with an increase of 2,95% and is traded at 7,335 euros. Among the drivers of the rebound of the Lingott stock, it is worth mentioning the promotion to Buy by the report on the European auto sector by Ubs. Analysts of the Swiss bank wrote that Fiat should be bought "because it offers low multiples and a possible increase in profits" linked to the consolidation of Chrysler, a factor that the market is only starting to metabolize now, after the blitz that brought Fiat to control of the US company. On the podium of preferred investments by UBS (which demotes BMW) there are also Volkswagen and Renault. During the meeting held yesterday in London with investors, Sergio Marchionne confirmed the goal of selling six million cars in 2014 thanks to the alliance with Chrysler (against the current 4 million) while for the current year the goal is to reach a net profit of 300 million euros and a net industrial debt of 1,5-1,8 billion euros. Yesterday's meeting aims at the possible launch of a one billion bond in the next few days.
To complete the good day of the Agnelli team, in addition to the increase of more than 2% in Industrial shares, the confirmation of the Buy rating on Exor by Equita sim stands out.
RATING EFFECT 2. NOMURA PUSHES ANSALDO STS
AND (WITH BOFA) MAKES THE CAMPARI MEMBERS TOAST
The drop in tension on the macro front made it possible to appreciate the analysts' report cards on various stocks, "obscured" in recent weeks by the negative intonation of the markets. Ansaldo Sts benefited from it, promoted with flying colors by Nomura. The stock of the railway signaling company rebounds and gains more than 5% following the drop that had brought it close to the low of 2011. The report (buy recommendation and target at 13 euros) highlights the strength of the market of reference, the high entry barriers which keep the level of competition low, the size of the order portfolio and the success rate in tenders (one out of two in which the company from the Finmeccanica team participates).
Furthermore, a boom in the sector is in full swing: Nomura estimates that the market in which Ansaldo operates will grow by an average of 4,3% per year between 2010 and 2015. In 2011, the Italian company will suffer from the effects of the freezing of contract for the railway line in Libya (turnover -2%) but in 2012 growth should be 14% and 2013% in 9.
Nomura, supported by the team of Lehman Brothers analysts taken over after the bankruptcy of the US bank, this morning also raised the target price on the Campari share from 5,5 to 6 euros. It is the same target price set by Bank of America (Merrill Lynch) analysts yesterday. The company confirms itself as an investment proof of slowdown in consumption: since the beginning of the year, the stock has gained 8%, against the modest +0,5% achieved by the Ftse Mib index.
CITIGROUP CONFIRMS THE BUY ON TELECOM ITALIA (TP 1,30)
THE REFUND IN FURNITURE AND RATES BERNABE'S WEAPON
Citigroup confirmed the Buy judgment on the company chaired by Franco Bernabé with a target price of 1,30 euro. Analysts are confident that the second half of 2011 will show significant improvement and the achievement of the targets set by the company. Fixed telephony should benefit from the increase in tariffs from July XNUMXst and from a less aggressive competitive scenario. Mobile telephony should be able to make up the gap with Vodafone in revenues from services thanks to the investments made and the remodulation of pricing. Finally, the note refers to the excellent dividend, which could be raised further thanks to the modest payout ratio.
Meanwhile, the Minister for Economic Development, Paolo Romani, at the end of the meeting to define the procedures for the sale of radio frequencies of the so-called digital dividend. He declared that "if all the frequencies are sold at the base price, the collection will be 3,1 billion". The minister also said that "a procedure has been developed so that the frequencies used today by local TV stations are made available for January 2013, XNUMX".
ACEA. WAITING AFTER THE REFERENDUM
FOR THE MOMENT IT'S GOING TO RENEWABLES
Banca Leonardo promotes the Roman utility (yesterday +0,27% in the final session), despite the impact that the referendum effect will have on the accounts. The company, however, has already reacted to the "cold shower", as confirmed by the press release issued after yesterday's board meeting.
The abrogation of the provisions envisaged by the Referendums does not change Acea's current positioning in the national water market. However, the Company is awaiting the necessary consequent legislative provisions, in order to verify the sustainability of the related planned investments". However, a possible plan B is already envisaged.” Alternatively, Acea will direct its resources in Italy to the other businesses where the Company is equally a leader (electricity distribution and production, renewable energies, waste treatment and disposal) and abroad".
WEDDING GIFT FOR BUFFON SHAREHOLDER
THE ZUCCHI STOCK IS N.1 FOR PERFORMANCE
On the eve of the wedding of new Zucchi director and partner Gigi Buffon, the Milan Stock Exchange decided to make a welcome gift to the goalkeeper of the national team and Juventus: the share of the textile company (+10,45% to 1,4160 euros) recorded the best performance of the session. Beyond the sentimental aspects, the upward push comes from the signing of the company's bank debt restructuring agreement which provides for the confirmation of the short-term lines, the redefinition of the repayment terms for the medium/long-term lines of credit and the review of financial parameters. Over the last month Zucchi has gained 66%, even 191% for twelve months.
In the afternoon, Zucchi itself officially communicated the bank debt restructuring agreement pursuant to art. 182-bis of the Bankruptcy Law and at the same time proceeding with the filing, with the bankruptcy section of the Court of Milan, of the appeal for its approval.
