The numbers confirm the strength of the Chinese recovery, now out of the emergency: +18,3% GDP in the first quarter. But the Stock Exchange, down 15% from the highs reached in February, barely notices it. During the week, the Csi 300 index fell by 1,0%. A completely different climate in the home of the great American rival: never so few job requests since the beginning of the pandemic, never so strong was the rise in consumption + 9,8% in March. And so in New York the Dow index rises for the first time over 34 points while the S&P 500 hits yet another record.
THE CHINESE STOCK FLAT. BEIJING CUBS CREDIT
Monetary policy explains the different trend. The Chinese central bank is curbing credit, with liquidity injections at the bare minimum. And meanwhile it is placing severe limits on Jack Ma and other fintech players. Conversely, not a day goes by without the US Fed and Treasury reassuring Wall Street that the liquid rain will continue.
- The Asian price lists have not moved much. The Asia Pacific index advanced by 0,2%. Chinese markets are weak: Hong Kong is at parity, Taiwan is down 0,2%.
- China's economy recorded the strongest year-on-year growth in the first quarter since the Statistics Office began communicating the data (early 90s): industrial production rose by 24% and consumption by 34% .
TOKYO THINKS ABOUT CANCELLING THE OLYMPICS
- The Tokyo Nikkei is unchanged, both in session and week terms. Japan is ready to cancel the Games of the XXXII Olympiad if the number of infected people continues to grow at the speed of the last few weeks”, said the secretary of the Liberal Party of Japan, Toshihiro Nika. So far, Tokyo has spent 28 billion dollars on the demonstration.
- The Korean Kospi closes the week up 2%. Mumbai -2%.
NEW DROP FOR IT BOND. THE JAPANESE BUY
- In New York, the yield on ten-year Treasury Notes falls again to 1,58%. The rally was helped by purchases by Japanese pension funds and insurance companies coinciding with the start of the fiscal year.
- The decline in market rates, favored by the extraordinary availability of liquidity and the stop-and-go vaccination campaigns, are helping gold, which has reached 1.764 dollars an ounce, its highest since the beginning of March.
- Oil archives the best week since the beginning of March. WTI crude trades at 63,5 dollars a barrel, Brent at 66,93: +7% since last Friday's close.
BOURLA (PFIZER): NORMAL LIFE IN EUROPE IN AUTUMN
“In Europe it is possible to return to a normal life already in the autumn”. This is what Albert Bourla, number one at Pfizer, claims, the Greek immigrant who rose to the top of the most famous pharma company in the world thanks to the vaccine that is about to cross the Atlantic to remedy the mess of AstraZeneca and J&J. A new injection of optimism for the market which, despite setbacks and cold showers on the pandemic, continues to sail at historic highs: the Stoxx 600 updated its third consecutive session of gains on Thursday thanks also to the recovery of the euro against the US currency. Exceptions, however, are the peripheral markets, which suffer from the bad streak of the banks, always hand in hand with rates (yesterday down) and the difficulties of the more cyclical sectors.
DRAGONS LAUNCHES A NEW MANEUVER. DEFICIT/GDP AT 159%
The government has asked Parliament to authorize it to borrow another 40 billion in 2021 and another 70 billion between 2022 and 2033. Draghi needs money for a new Sostegni decree and to supplement the Recovery Fund with a "national quota". The debt/GDP ratio will rise to 159%. The premier will announce the news on the health crisis first to the presidents of the regions, then at a press conference: the control room should decide how and when to reopen. Yesterday there were another 380 dead. The positivity rate rises to 5,3%. The places occupied in intensive care are still decreasing (-73). The people vaccinated (two doses) are 4.209.897 (7,06% of the population).
ONLY MILAN AND MADRID IN RED
- Piazza Affari – 0,19% is, together with Madrid -0,13%, the Stock Exchange that suffers the most: the index has continued to fluctuate for days around the 24.500 mark without risking an assault on the peak of 25 points relevant to the technical analysis plan.
IN PROGRESS THE OTHER SQUARES. ABB+3,5%
- London +0,67%, Frankfurt +0,36%, Paris +0,4%, Amsterdam +0,18% closed.
- The positive notes linked to the revival of the economic situation are multiplying on the various price lists: the French Publicis rises by 3,4% after the recovery of advertising, Wpp is also positive in London.
- Swiss ABB advanced 3,5% after raising its outlook on sales for the year.
- Fireworks over German real estate after the Constitutional Court has objected to the unconstitutionality of the law that establishes a ceiling for the rents of apartments in Berlin; Deutsche Wonhen gains 3,5%.
SPREAD TO 101. TODAY THE BTP FUTURA COUPON
- The coupon should be announced today third issue of the BTP Futura, the government bond dedicated exclusively to retail savers. The bond will be placed from Monday 19th April to Friday 23rd April next unless it is closed early. The proceeds of the placement will be used to finance the measures for the economic recovery from the Covid-19 and the state expenses intended to deal with the pandemic, including those relating to the vaccination campaign. The bond will have a 16-year maturity and a double loyalty bonus will be provided.
- The Italian paper accelerates in the afternoon in a session with limited volumes. The spread retreats to 101 (-2,53%) basis points and the 0,71-year BTP rate slips to +0,79% from XNUMX at the start.
JOHN ELKANN: ELECTRIC FERRARI IN 2025
Cars and banks in the front row of Piazza Affari. It was the day of the electric shock for the Exor team -0,11%.
John Elkann announced at the meeting that Ferrari +0,95% will put the first electric model on the market in 2025. The choice of the CEO who will replace Lou Cammilleri is still on the high seas. In June, the first line of men's and women's clothing signed by the Cavallino Rosso will be released. The year ended with a consolidated profit of 609 million and a dividend of 0,867 euro.
TAVARES: AN “AGGRESSIVE AND DISRUPTIV PLAN FOR STELLANTISIS"
"Electric" 2025 is also a goal of Stellantis +0,05%. Within that year, it was said in assembly, each model proposed in the United States and Europe will have an electric version (pure or plug-in hybrid) to meet new market needs. CEO Carlos Tavares predicts that in 2030 electric cars will account for 70% of sales in Europe and 31% in the United States.
Tavares anticipated that the industrial plan that will be presented at the end of the year will be "offensive and full of radical and disruptive choices". The new investments will be partly compensated by the economies of scale to be achieved by reducing the production platforms to just four.
A meeting with the Italian unions is scheduled for today, who will ask for information on the costs of the "revolution" for the Bel Paese's plants.
Cnh slows down -1,66%, The meeting yesterday approved the distribution of a dividend of 0,11 euro.
UNICREDIT: ORCEL'S SALARY RAISES TO 54%.
Among the banks, focus on Unicredit -1,14%: in assembly the list presented by the outgoing board of directors, which includes Andrea Orcel as CEO and Pier Carlo Padoan as chairman, passed with the relative majority of the shareholders' votes, equal to 76,31%. Narrower majority, 54,1%, for Andrea Orcel's salary of 7,5 million euros targeted by some proxies. A JP Morgan report discusses a merger between Unicredit and Generali that "could be rational from an industrial point of view".
From today, the M&A procedure of the second Italian bank, engaged in the run-up to the leader Intesa San Paolo -0,26, is now in full swing. Yesterday there was a meeting of one of the possible counterparties, Banco Bpm – 0,39% which approved the distribution of a dividend of 0,06 euro per share.
Well Bper +0,58%, another possible wedding candidate for the institute led by Giuseppe Castagna. Mps -0,83%.
CREVAL FALLS BELOW THE PRICE OF AGRICOLE
Creval loses ground -0,73% at 12,25 euros, below the price (12,5 euros) of new bid price offered by Crédit Agricole to get control of the institution.
Highlights Amplifon +2,84%, Inwit +2,15% and Campari +0,98%. Diasorin +1,25%: Invest Securities upgraded the rating to Buy with a new target of 190 euros.
Weak energy. After the leap forward on the eve, Tenaris retraces - 3,5%. Eni -1%.
RAIN OF BUYS PER UNIEURO + 6,7%
Also worth noting:
Unieuro rally +6,68% to 22,68 euros: Kepler Cheuvreux raised the target price from 20,8 to 25,3 euros, confirming the buy recommendation. Banca Akros has raised the target price from 21 to 25 euros while Mediobanca Securities confirmed the outperform rating signaling that Iliad and Iliad Holding have declared that they could make further purchases.
On the Aim, Gel shone +15,05% to 1,07 euros. The company that operates in water treatment was pushed by Integrae Sim which raised the target price from 1,77 to 2,41 euros, confirming the buy recommendation.
