It changes. the deficit, envisaged by the Def at 2,4% for three years, will already drop to 2,2% starting from the second year to drop to 2% in 2021. This was announced by Prime Minister Giuseppe Conte at the end of last night's majority meeting which, moreover, did not release the Economic Document and Finance: considerable distances remain on basic income and the thickest fog still reigns over coverage, despite the optimism flaunted by Luigi di Maio, "the indigestible leading actor in the Italian feuilleton who is compromising the health of the European stock exchanges", as he writes this morning Les Echos.
But the opening announced by Conte, who yesterday put out the fire lit by free words by Claudio Borghi, chairman of the Montecitorio Budget Commission in favor of leaving the euro, predicts a less troubled start for Piazza Affari and government bonds for this morning.
The euro, which dropped last night to its lowest level in the last five weeks and traded this morning at 1,157 against the dollar, from 1,154 at the close. But it won't be easy to archive yesterday's heart-pounding session, which ended in moderate decline (-0,23% at 20.562,31 points) after repeated ups and downs. But above all weighs the spread, closing 299 points on the German bund, but at 151 on Portugal.
BUSINESS PLACE RECOVERS. THE EUROPEAN EXCHANGES FLAW
In the meantime, the tension begins to be transmitted to the Eurozone price lists: Frankfurt -0,42%; Paris -0,71%; Madrid -1,08%. London is also down fractionally (-0,27%). According to the analysis by the AlphaValue study center based on 470 stocks from the Old Continent, in addition to the effect of the Italian syndrome, there is the slowdown in the profit prospects of key sectors, starting with the auto, airline, pharma and insurance industries. Profits, seen up by 8,4% in April (better than the American competition) fell to 6,2% in June and then accelerated the decline with the Italy effect. And so Wall Street has increased its gap from European lists: the Eurostoxx is now 14,5 points below Standard & Poor's.
AMAZON INCREASES WAGES, DOW JONES RECORD
Other climate on the other side of the Atlantic: the Dow Jones closed up 0,46% to 26.773 points, record number 12 of 2018. The New York Times fired another broadside against Donald Trump: the luck of the tycoons is linked to a sensational tax evasion (413 million dollars) at the time of collecting the paternal inheritance. But the most relevant news comes from the president's enemy number one, Jeff Bezos.
Amazon down after a six-day rise (-1,5%), announced the increase in the minimum hourly wage of employees in the US (15 dollars) and in the UK (9,75 pounds). A sign of the state of health of the economy but also a new strong pressure on competitors, in view of Christmas. A low-cost operation: the provision is worth about 0,001% of the company's stock market value, which amounted to 961 billion dollars last night.
The S&P 500 index moved little (-0,04%), the Nasdaq was weak (-0,47%). The landslide of Facebook continues (-1,91% yesterday and -5,6% in the last three sessions) after the outbreak of the new case of pirated identities from the social network.
US TREASURY PUNISHES YAKUZA: TOKYO -0,6%
In Asia, Japan's stocks are down 0,6% this morning. The US Treasury has decided to impose heavy fines on companies linked to the Yakuza, the Japanese mafia. The first measures concern the Yamaguchi clan of Kobe, 34,500 strong members, which exercises, among other things, its control over golf courses and art auctions.
The Chinese stock exchanges closed for holidays, Hong Kong (-0,4%) and India (-0,5%) down. The landslide of the Indian rupee and that of Indonesia continues, at the lows of the last twenty years.
OIL BELOW 85 DOLLARS, US STOCKS TODAY
Brent oil remains close to the highs of the last four years, at 84,8 dollars a barrel. Iraqi oil exports fell in September to 1,7 million barrels, Bloomberg reported. US Crude Inventories data is released today.
At Piazza Affari Saipem -0,3%: Stefano Cavacini is the new financial director.
THE SPREAD HOLE 300, TODAY THE EXCHANGE OF THE TREASURE
Worth noting is the chronicle of a day lived dangerously on the debt front.
After an opening peak at 302, almost 20 points above yesterday's close, the spread eased the rise in mid-afternoon, slipping briefly below 290, only to then return to the highs in closing.
The Italian ten-year rate fluctuated during the day between a peak of 3,44%, the highest since the end of February 2014, and a low of 3,34%, against 3,31% at yesterday's close. The fluctuation of the two-year yield is also wide, between 1,62% and 1,38%.
The Italy/Spain spread widened today by 10 points to 187, that on Portugal by 11 to 151.
The new government bond swap operation, the second of 2018, is being held today. The Treasury is offering up to 2,5 billion euros of the BTP in September 2028, coupon 4,75% by withdrawing the BTP on February 2019, October 2020, November 2020 maturities and May 2021 coupon 3,75%.
BANKS UNDER FIRE: MORGAN STANLEY CUT TARGETS
Banks weighed down again by the spread: the Italian basket index fell by 1,17%, slipping to its lowest level since 28 February 2017. After Citigroup, Morgan Stanley also intervened on sector securities, confirming the ratings but revising the targets downwards price. Specifically, the American bank confirmed the overweight recommendation on Mediobanca (-0,46%) and Unicredit (-1,85%) shares but reduced the target price from 10,6 to 10,4 euros for Piazzetta Cuccia and from 18 at 17,2 euros for the bank in Piazza Gae Aulenti.
For Banco Bpm (-1,99%) the rating remains unchanged at equalweight but the target price drops from 2,6 to 2,3 euros. Equalweight also confirmed on Mps (-4,54%), Intesa Sanpaolo (-0,33%) and Ubi Banca (-2,06%) but the price was cut, respectively, from 2,7 to 2,3 euros, from 3,1 to 2,9 euros and from 3,7 to 3,3 euros.
BANCA IFIS CONFERENCE TODAY, INSURANCE WEAK
Among the mid caps, heavy Credito Valtellinese (-5,54%).
Banca Ifis (+4,6%) against the trend, recovering from the lows since 2016. The company announced that this afternoon at 14 pm it will hold a conference call with analysts to clarify the company's prospects and answer any questions from investors .
Generali insurance (-1,15%), Unipol (-2,53%) and asset management were down: Poste Italiane -1,79% and Banca Mediolanum -1,53%. Azimut (+0,86%) and Banca Generali (+1,27%) went against the trend.
TIM ON THE MINIMUM SINCE 2013. THE 5G AUCTION RAISES 6,55 BILLION
Still heavy Tim (-2,48%), on the lowest since the summer of 2013. The stock was affected by the competition on the network and mobile service and the 5G auction, which reached 6,55 billion. Tim and Vodafone are awarded the 1,7 Mhz frequencies for 80 billion each. The race finished with record results globally. Wind Tre and Iliad pay 384 million euros for the 20 Mhz frequencies.
ASTON MARTIN'S IPO TODAY, FERRARI STABLE
A new competitor joins the GP of super luxury cars: the IPO of Aston Martin is held today in London: bonds offered for 4,54 billion pounds. The roadshow recommended cutting the request, initially expected at 5,07 billion.
Ferrari moved little yesterday (-0,12%) despite Morgan Stanley raising its target to $140.
Fiat Chrysler (+0,14%) recovered all the morning's losses, moving above parity in the final stages thanks to better-than-expected sales data on the US market (+15%, to 199.819 units). "The Ram and Jeep brands drove our total and retail sales to their highest levels in 18 years," said Reid Bigland, US sales manager. Brembo -1,74%.
FINALLY IT DOESN'T PUSH UP STM
Stm also advanced (+2%), in the wake of the German competitor Infineon, +3% in Frankfurt. The head of the automotive division of Infineon, Peter Schiefer, allegedly raised the order targets during a conference call.
ASTALDI FALLS IN SERIES D
Yet another collapse of Astaldi (-28,13%). Fitch downgraded the rating to C from CCC- following the composition with creditors application. Standard & Poor's downgraded the stock to D, the lowest tier.
