US stock exchanges sway at the mercy of crude oil fluctuations. Better Europe in good if not excellent health, thanks above all to the brilliant data of the German economy. And Asia is about to end the week with new records. After Wednesday's 6% fall, oil recovered: Brent rose by 2% to 56,7 dollars a barrel, Wti to 51 dollars (+1,2%).
The dollar is back on the rise, after the contradictory signals in the Fed minutes: the US currency is up sharply to 1,067 against the euro following the positive data from the US labor market. It is the largest increase in the last three weeks.
Here is a summary of a snapshot of a financial day that offered many ideas. In Tokyo, the Nikkei index broke the 20,000-point barrier, climbing to new highs since April 2000. Since January, growth has been around 15%.
Meanwhile, the rally continues in Hong Kong, which has risen by more than 10% in one week on the wave of purchases from China. Modest gains for US stocks: Dow Jones +0,3%, Nasdaq +0,5%%. The S&P rises by half a percentage point: the gain is 1,6% since January. The excellent behavior of the energy sector +1,5% favored the rebound.
The crash of Alcoa (-4,8%) weighs even on a psychological level. The aluminum giant, as always the first company to announce its quarterly accounts, has given life to analysts' worries about the effects of the strong dollar: the group's profits are better than expected, but the aluminum giant's turnover, expressed in dollars, it is declining.
THE EUROPEAN STOCK EXCHANGE INDEX BEATS THE 2000 RECORD
European stock markets closed the day with a sharp rise after the data on industrial production in Germany, which rose in February to a rate of 0,2%, double what economists averaged forecasts. In Milan, the FtseMib index gains 0,96%, to 23.803. The Paris Stock Exchange (+1,28%) and Frankfurt (+1,01%) did better. Madrid +0,57%. London +1,07% advances on the wave of M&A.
The overall index of the Stoxx 600 European Stock Exchanges rose by 1% to 408,9, a new all-time high, over the previous record set in March 2000 (405,5).
WALL STREET, ITALIANS ARE IN FASHION
Italians are in fashion on Wall Street. After the numerous exploits of Fiat Chrysler and the sparkling debut9 of Igt, in the orbit of the De Agostini group, yesterday Walgreen Boots Alliance which has the Italian Stefano Pessina as its reference shareholder rose to 90,08, +2,8% , after the accounts for the last quarter of 2014 closed on 28 February with a profit of 1,18 dollars per share, higher than the 0,95 dollars indicated by the consensus of analysts.
Revenues, on the other hand, were only 26,6 billion, lower than the 27,6 billion dollars forecast (here too the strong dollar weighs) Pessina, born in 1941, a nuclear engineer from Pescara controls about 7% of the capital of the colossus which in America it manages an immense network of pharmacies (175 employees) and provides some health services. The company has a capitalization of 98 billion dollars (+18% since the beginning of the year).
ATHENS PAYS THE IMF. DRAGHI RAISES FUNDS FOR GREEK BANKS
Greece paid the installment of 458 million due to the IMF. The news, although preceded by assurances from Athens, was welcomed with great satisfaction by the markets. But at the same time, according to the Greek press, a drastic ultimatum has arrived: Brussels wants to receive a credible and concrete plan within six working days, so as to be able to release the 7,2 billion vital to the balance of the Greek state. Alexis Tsipras has meanwhile completed his visit to Vladimir Putin.
But there are positive notes. First, Greece's Finance Minister Yannis Varoufakis said the government was working hard to restart privatisation, but wanted to make sure buyers offered minimum investment requirements and the state maintained a presence. Meanwhile, the European Central Bank has raised the ceiling of the emergency liquidity program (ELA) for Greek banks by 1,2 billion euros as requested by Athens.
BUND MINIMUM RETURNS. TODAY'S ANNUAL BOT AUCTION
The tensions over Greece do not disturb the debt market, where the march of the Bund continues relentlessly. The German 0,151-year yield updated its record low yesterday, reaching 4,722%. Spain also placed bonds for 13 billion euros with declining rates. As for Italy, waiting for the next Btp Italia, the Treasury faces the mid-month auctions. In the medium-long auction scheduled for April 6th. Between 7,5 and 3 billion will be offered between the new 0,25-year BTP (which will have a coupon of 0,75% against the previous 7%) and those at 15 and 6,5 years. Today it will be the turn of 7,5 billion annual bots against the 0,025 billion due. On the gray market, the annual Bot traded around XNUMX% yesterday.
BOILING EFFECT ON MEDIASET. ACCELERATE RCS
Fly Mediaset (+2,2%) on the wave of the possible interest of Vivendi. Vincent Bolloré yesterday concluded an agreement with the American hedge manager Schoenfeld: an extra dividend will be distributed, thus avoiding a pitched battle at the next meeting of Vivendi, the French media giant that does not hide its ambitions. In an interview with the Financial Times, Vivendi's CEO Arnaud de Puyfontaine confirmed that the company, after the latest sale, is now ready for acquisitions: "We are about to become a player entirely dedicated to media and content"; What are the targets? "We are thinking about transformational transactions. We have no interest in Sky, while ITV is a big company but it's too expensive."
Given the premises, Mediobanca Securities did not go so far as to believe that Mediaset ""could represent an interesting strategic option for Vivendi, being a media and content group, which would allow the French group to enter the Italian and Spanish television markets directly". Without forgetting that the company chaired by Bolloré is about to become the main shareholder of Telecom Italia.
To remain in the media sector, yesterday in great turmoil at the European level (Eurostoxx +1,5%) we should point out the upturn of Rcs Media Group, one of the best stocks of Piazza Affari with an increase of 8,17% 1,2018 euros. The last board meeting before the shareholders' meeting will be held on Friday 17 April.
ALFA ENGINES PUSH FCA. USE OK FOR FINMECCANICA
FCA accelerates +2,3% in a lively day for the automotive sector (+1,8% the Eurostoxx index). Analysts were pleased with the news of Termoli being assigned the mission to produce two new Alfa engines, a 4-cylinder petrol engine and a 6-cylinder Ferrari-derived one. An investment of half a billion euros decisive for the leap in quality of the Alfa Romeo, the latest bet by Sergio Marchionne. Mediobanca Securities has promoted the operation while Banca Imi (buy, target under review) has appreciated the issue of the 3 billion dollar bond which will serve to pay off the old Chrysler bonds and to release Detroit's cash to the benefit of FCA. Exor rises by 2,5%.
Good news from the USA also for Finmeccanica +2,18% following the news that the subsidiary Drs Technologies was awarded 3 new orders for the supply of equipment to armed vehicles of the Canadian Army and to submarines and ships of the US Navy of value total of 540 million dollars (503 million euros). The best stock was Prysmian (+2,67%): CEO Valerio Battista stated that the company's margins should improve already in the first quarter.
FERRAGAMO WON'T STOP ANYMORE. TOD'S TOO WELL
The Ferragamo fashion show continues, the absolute star of luxury. Yesterday, after the leap of 6,2% on the eve, the shares of the Florentine fashion house achieved a new rise of 1,4%. The rally has made analysts suspicious, who speculate possible takeovers by some large operators. In Paris, Lvmh advanced by 1,9%. Tod's +1,8% and Moncler +1,2% also performed well. Luxottica +1,6%. Sales instead on Yoox -0,61% . Banca Imi has reduced the recommendation to hold from buy with the target price going from 24,9 to 29,4 euros.
A WEEK THE BAD BANK OF INTESA AND UNICREDIT
UniCredit's Board of Directors +0,5% has given the go-ahead for the scheme of the transaction conducted with Kkr, Intesa Sanpaolo and Alvarez & Marsal for restructured loans. This was confirmed by the CEO Federico Ghizzoni adding that "now we need to make the scheme operational, sign the real contracts, set up the newco". The operation, which will concern loans from performing companies for a total value of 1-2 billion, will start shortly because the birth of the newco "will not be a matter of months but will be finalized in the shortest possible time". The rest of the sector moved little: Intesa +0,1%, Mediobanca +2%. Only Monte Paschi -0,6% is in negative ground.
BALZO DI SALINI, HUNTING FOR M&A
Oil companies do well in Piazza Affari: Eni rises by 0,9%, Saipem +0,2%, Tenaris +2,2%. Great leap by Salini (+4,9%). At 4,28 euros. The company is approaching the 5 euro mark which, according to Mediobanca Securities, could trigger a chain of growth operations for the group under the banner of M&A. The level of 5 euros "has always been considered fair by management for carrying out card-to-card transactions", the analysts specified. In the cement and construction sector, Buzzi performed well, gaining 2,4%. On the other hand, Enel Green Power decreased (-0,51%), penalized by Goldman Sachs which reduced the target price to 1,95 euros from 2,05 euros.
