The European Stock Exchanges, awaiting the decisions of the Federal Reserve, are marking time, but just below the highs. In Milan, the Ftse Mib index dropped 0,17% just below 22.400 points while Madrid dropped more than half a percentage point. Frankfurt was also down -0,06%. Modest increases in Paris, London and Zurich +0,13%.
The OECD confirmed the global economy growth estimates for 2017 (+3,5%) and raised those for next year to 3,7%. “However – reads the Outlook – the recovery in business investment remains weaker than would be needed to sustain healthy productivity growth. Wage growth has been disappointing and has kept inflation at low levels. The OECD has also revised upwards its estimates of Italy's economic growth: the Italian economy will grow by 1,4% this year and by 1,2% in 2018 against 1% and 0,8, XNUMX% estimated in June.
On the currency front, the euro-dollar cross rose to 1,201 from 1,199 yesterday.
The most relevant note is the advance of the pound which gains 0,6% against the Euro: cross 0,884. The rise is linked to the leap forward in British inflation in August, net of the cost of energy: 2,8% against estimates of 1,4%, strongly accelerating and well beyond the 2% target. This increases the likelihood that the British central bank to raise rates soon.
Oil rose following statements by the Iraqi Energy Minister, according to which Baghdad could decide to spontaneously reduce its production to support the price. Brent rose by 0,5% to 55,4 dollars a barrel, Wti to 50,3 dollars (+1%). At Piazza Affari Eni 0,37% salt, Saipem + 0,82%.
The cement sector is in the spotlight. After the sale of the Italian assets to Italcementi (Heidelberg group), Cementir it jumps up by 6,24%. Equita (buy) raises the target price to 8,5 euros and Kepler Cheuvreux to 7,6 euros. Strong increases too Buzzi +5,48% because the operation eases the problem of production overcapacity in Italy.
To depress Piazza Affari is the bank decline (European Stoxx -0,4%). Understanding -0,48% Unicredit -1% Bpm bank -1,03%.
They also go down Mediobanca -0,11% and Generali -0,32% after rumors about Piazzetta Cuccia's plan to renounce the sale of 3% of Leone to transfer its stake (13% of Generali) to a newly established holding company where Mediobanca would bring in other investors, while maintaining a stake by at least 51%. The project has already obtained the approval of the two main shareholders of Mediobanca, Unicredit (8,6% of the capital) and Vincent Bolloré (8%). There are two advantages: cashing in liquidity without reducing the role of main shareholder and risking depressing Generali's shares with stock market sales.
Fiat Chrysler +0,84% marked a new all-time high at 14,49 euros in the morning.
The negative news communicated yesterday evening does not affect the performance of the stock. The group announced it will recall 494.000 Ram heavy and medium pickup trucks worldwide due to a water pump that could overheat and potentially cause a fire. In the automotive sector, out of the main basket, the ride continues Landi renzo +5,36%: the industrial plan to 2022 was published last week.
Telecom yields 0,50% in the morning. Meanwhile, the former CEO Flavio Cattaneo returns to lead Italo to lead the railway company. Together with the top manager, Luca Cordero di Montezemolo also returns as president. The two were already part of Italo's board of directors.
Positive luxury stocks: Luxottica +0,17% which, like Essilor, it has not sent the EU any proposals to address the competition concerns raised by the EU antitrust over the merger.
Rumors continue on the possible entry of Alibaba into Yoox -020%. Banca Akros identifies two possibilities: the opening of a store within the Alibaba marketplace or the Italian company could manage the entire fashion/luxury section of the Chinese site helping Jack Ma's company to erase the image of seller of fake.
Among the small/caps, the rise of Central Dairy of Italy +15,46% to 3,33 euros after the turnover update as at 31 August 2017: the company's net revenues recorded a 90% increase compared to the same period a year ago.
