US JOB BOOM: DOW OVER 17 THOUSAND. FIAT, MEDIASET AND FINMECCANICA SUPERSTARS IN MILAN
Today Wall Street celebrates Independence day with flags unfurled. In the wake of the excellent data on new hires, the Dow Jones index +0,54% broke the historic barrier of 17 points, closing at 17.068, The S&P +0,55% at 1.985 took another step towards a record still most prestigious: the peak of 2.000 points. Even the Nasdaq +0,63% closed the short week in positive territory (all equity markets closed today).
The wave of the rise also hit Tokyo this morning +0,6% (+2,5% in the week). Hong Kong +0,3%. The Asia-Pacific index closes at a three-year high. The European stock exchanges were in positive ground yesterday, galvanized by Mario Draghi's press conference after the ECB summit. Frankfurt rose by 1,19%, London by 0,72%, Paris by 1,02% and Madrid by 0,67%. In Milan, the FtseMib index rose by 0,95% to 21.885 points.
The quotations of the dollar also recovered against the euro at 1,36o4 and against the yen at 102,26. The spread between BTPs and Bunds closed at 157 basis points from 164 basis points at the opening and the domestic 2,86-year yield fell to 2,69%. The yield on US T bonds rebounds this morning to 103,7%. Oil down: it is the sixth consecutive session of decline for Wti (0,6 dollars, -110,7%) and the fourth for Brent (0,4 dollars, -XNUMX%).
DRAGONS: WE ARE NOT DONE. YELLEN DOES NOT BRAKE THE BULL
At the origin of the market rally there are two factors: the trend of the US labor market and the signals coming from Mario Draghi who is determined to convince operators that, after the cuts in June, "our work is not finished".
In America in June there was a hiring boom with the creation of 288 new jobs, much better than the 215 expected on average by economists. The unemployment rate fell from 6,3% to the lowest 6,1% since September 2008, thanks to an increase in new jobs. The drop in long-term unemployed is significant, a point of Yellen's, from 34.6% of the total to 32.9%. The underemployed also fell, from 12.2% to 12.1%.
On paper, Wall Street could fear a rate hike at this point. But Yellen declared on Wednesday that the tasks of monetary policy do not include that of containing the euphoria on the markets (a concept reiterated by Super Mario yesterday) and that the current levels do not worry her anyway, once again showing that everyone is effects a dove.
The European Central Bank has left everything unchanged: the benchmark refinancing rates remain at 0,15%. Deposit rates are negative by 0,1%. Mario Draghi insisted that rates in Europe will remain low for a long time to come, and that the ECB is ready to use "non-standard" measures, if necessary, to support economic growth.
Draghi declared that the new long-term loans intended for banks and conditional on credit to households and businesses, the so-called "Ltro", could amount to 1.000 billion euros. The first two financing operations will take place on 18 September and 11 December 2014. A further six operations will take place between March 2015 and June 2016. The ECB president also announced that from January 2015 the central bank meetings will take place every six weeks (now every four weeks), and the minutes of the meetings will be published.
TONIGHT ON STAGE THE SHOW BETWEEN THE BISCIONE AND TELEFONICA
The D-day has arrived: by tonight, barring further postponements, the negotiation between Mediaset up 3,8% and Telefonica. The sale to the Spanish group of 22% of the Iberian Digital+ platform for a figure close to 355 million euros seems imminent. But the operation is more complex. On the one hand, industrial collaboration is envisaged between the Spanish group and the Italian company, a content supplier. On the other hand, the entry of Telefonica into the capital of the Italian Premium company is not excluded, as an alternative to the offer of Al Jazeera.
The Alfa group does not confirm the rumors, limiting itself to saying that an agreement has not yet been reached. Until tonight there is time to exercise the right of first refusal to take over 56% of Digital+ from Prisa. But it seems simple pretactic. Mediobanca has meanwhile raised its recommendation to Neutral from Underperform. The target price goes to 3,82 euros from 3,47 euros.
Telecom Italy rose by 2,2%. The push comes from the relative majority shareholder, Telefonica, which yesterday favored the recovery of the European telecommunications sector: the EU antitrust in fact gave the green light to the purchase of E-Plus by the Iberian group which thus strengthens its position in Germany.
FIAT APPROACHES THE WITHDRAWAL PRICE
leap of Fiat +3% on the wave of the convocation for August XNUMXst of the shareholders' meeting to approve the cross-border merger by incorporation of Fiat into the Dutch subsidiary Fiat Investments from which Fiat Chrysler Automobiles (FCA), the new holding company of the group based in the Netherlands will be born.
For dissenting, abstaining or absent shareholders, the transfer of the registered office abroad entails a right of withdrawal set at 7,727 euros, slightly higher than the current share price (7,71 euros) but with a maximum cash disbursement limit of 500 million: about 8% of the capital could be satisfied excluding the treasury shares and the Exor quota. Since the beginning of the year, Fiat's performance is +31%.
MORETTI PLAYS THE CHARGE OF THE SPA STATE
The Treasury companies were in great turmoil on the day when Fincantieri,at its debut on the list, it avoids sinking: the company closed at 0,780 euro, unchanged compared to the placement price (0,78 euro).
Finmeccanica rose by 3,1%. The stock accelerated after the managing director Mauro Moretti announced that a new industrial plan, "completely new and innovative", will be approved within the year. The former CEO of Trenitalia, who spoke on the sidelines of a conference on the aerospace industry, added that there are several companies interested in Ansaldo Breda.
Mediobanca has raised its rating on Finmeccanica to Neutral from Underperform. The target price goes to 6,0 euro from 4,6 euro. News in sight also for Eni +1%. On 31 July, the six-legged dog will present a new industrial plan based on strengthening the core business of E&P (extraction and production) and on resizing its presence in distribution. The new strategy, according to rumors, also provides for the sale of the controlling stake in Saipem + 2,3%.
According to Equita, Eni's exit from Saipem's shareholding would benefit the Italian oil company's debt. To date, Eni is the largest lender of Saipem's debt (over 5 billion euros). If Eni leaves Saipem, the engineering company will have the problem of finding new sources of financing.
FINECO GRANTS THE BIS. AMONG THE BANKS, ONLY BANCO POPOLARE SUFFERS
FinecoBank scored another nice rise. After closing yesterday, the first day of listing, with a leap of 8%, today it gained another 4,2%. In the rest of the sector they go up Unicredit + 1,6% Understanding + 0,6%. Where's Banca +1,7%. Bucking Banco Popolare -2,7%. Montepaschi +1,3% also thanks to the promotion of Kepler Cheuvreux who raised the rating to Hold from Reduce.
TENARIS AND LUXOTTICA PROMOTED BY REPORTS
In the spotlight Tenaris +1,9% after the promotion of Goldman Sachs which raised the recommendation to Neutral from Sell. The target price was raised to 16,50 euro from the previous 15 euro. Since the beginning of the year, the stock has gained approximately 10%. Strong increase also of Luxottica +3,8%, after six cuts in a row. Deutsche Bank reiterated the Buy rating. Rest 2,5%, StM + 1,4% Prysmian + 1,9%.
