“Hahahahaha! The signals of a market are increasingly visible”. Here is the headline of the Shanghai Securities News, a publicly owned financial newspaper. It is just one example among many of the euphoria that has invested the Chinese Stock Exchange, now under control. But the symptoms of the bubble have spread to the West. The limiting case is that of Tesla, which scored yet another flight of 13,5% on Monday. Already at the end of last week, Tesla had come to be worth more than the six European automakers combined: 224 billion dollars against 205 billion. In short, a company that produced 400 electric cars last year (without making a profit) is worth more than the 28,5 million pieces produced by Volkswagen, Daimler, BMW, Renault, FCA and PSA, which generated 32 billion of profits. Liquidity excesses which, for now, do not frighten markets committed to fighting pandemic fears.
TOKYO, AMAZON SLOWS DOWN (+5,8%) BEYOND 3 THOUSAND DOLLARS
This morning, after the Monday boom, the Shanghai Composite gained 1,3%, the Shenzhen Composite 2%. On parity the Hang Seng of Hong Kong. The Nikkei of Tokyo (-0,5%) and the Kospi of Seoul (-0,6%) are down. Samsung falls (-1,3%) despite analysts expecting rising accounts for the second quarter.
On the other hand, futures both on Wall Street and on the European markets are down slightly. Yesterday the S&P500 closed up 1,59%, the Dow Jones up 1,78%. New record for the Nasdaq (+2,21%). Amazon (+5,8%) has exceeded the ceiling of 3.000 dollars per share. Uber closed up a full 6% after buying Postmates, a food delivery company, for $2,65 billion (in shares).
The indices accelerated after the jump in the ISM non-manufacturing index, which returned to February levels in June.
GOLD ABOVE 1.780 DOLLARS, OIL DOWN
Gold remains at the highs, at 1.784 dollars an ounce. Oil down 0,5%, to 42,8 dollars a barrel.
White smoke in the night for the Simplifications decree approved by the Council of Ministers with the formula "subject to agreements". It consists of almost one hundred pages containing news on public works, construction, digitization of the PA and green transformation to relaunch the country after the Covid emergency.
GERMAN INDUSTRY STARTS AGAIN, GREAT MANEUVERS ON RECOVERY
Europe also participated yesterday in the unanimous rise in price lists. Macro data helped fuel the run on China's boom. Germany's factory orders climbed 10% after collapsing in April (-26%). The signs of easing on the monetary policy front are also multiplying, but also on the more thorny issue, that of the Recovery Fund. The Financial Times reports that the German central bank will continue to buy bonds during the summer, as foreseen by the monetary policy programs launched by the European Central Bank. Meanwhile, the governor of the Banque de France, Villeroy de Galhau, said that unconventional measures will still be used for a long time, as Covid 19 has changed the paradigm within which decisions must be made. The only one holding back, in view of the European summit on 17/18 remains the Dutch premier Mark Rutte: "I don't think there is any need for this mad rush," he said.
PIAZZA AFFARI RETURNS ABOVE 20 THOUSAND POINTS
Piazza Affari (+1,55%) rose above the barrier of 20 points to 20.031. Similar script for the other exchanges: Paris -1,49%; Renault stands out (+5%) in the price list.
COMMERZBANK CELEBRATES THE TURNOVER AT THE TOP
Commerzbank (+1,64%) flies to Frankfurt (+7,7%) after the ousting of the CEO of the German bank, Martin Zielke, and of the president, Stefan Schmittmann, following a clash last week with the trade unions and the Cerberus fund. Deutsche Bank gains 5%.
The best price list is Madrid (+2,06%). Outside the Eurozone, London +2,02%.
FUTURA RAISES 2,375 BILLION AT DEBUT
Orders for the new Btp Futura they reached 2,375 billion euros on the first day of the subscription of the new government bond, 100% reserved for retail customers and designed to finance Italy's post-Covid-19 recovery. The outcome of the first day of placement "was very positive" according to the head of the Italian public debt Davide Iacovoni.
The definitive coupon rates will be announced at the close of the placement and cannot in any case be lower than the guaranteed minimum coupon rates. The security, conceived as an issue in 2030 and with a coupon that will rise over the years to which a final loyalty bonus can be added, should yield in a range between 1,38% and 1,58%. In the euro area it is difficult to find such a high yield, if one considers that the Spanish 0,437-year bond, for example, stands at XNUMX%.
The 1,24-year BTP yield is curbing to 3% (-167 points) taking advantage of the return of risk appetite. Spread at XNUMX points.
INTESA AND UBI RISE, UNICREDIT LEADS THE RACE
Also in Milan, as in the rest of Europe, the engine of the rise was bank stocks.
In the top five places in the ranking of the largest increases, there are five banks, the two from Spain, Santander and BBVA, the two from France, Société Générale and Bnp Paribas, the Dutch Ing.
The Ops challenge also started under the banner of increases: Intesa San Paolo +2,7%, Ubi +3,2%. Intesa contested the assessments on the offer made public on Friday by the Ubi board of directors, who deemed the operation not very convenient for its shareholders and, on the other hand, claimed a leading role in the consolidation among medium-sized institutions, if it remains independent. Kepler Chevreux has raised the target price of Ubi to 2,6 from 2,4 euros. Fidentiis also recommends joining. Bank of America believes Intesa's offer is too generous. Equita Sim reduced the recommendation on Ubi from hold to reduce, with the target price dropping from 2,3 to 2 euros, while it confirmed the buy rating and the target price at 2,2 euros on Intesa Sanpaolo.
Unicredit also stands out in the sector, gaining more than 4%, ahead of Banca Bpm (+4,19%) and Fineco Bank (+3,6%), which set a new historical record.
TIM, LEONARDO AND FCA RUN
The market rewarded cyclical stocks. Guizzo di Tim (+3,2%): Reuters wrote that Fastweb will invest in Tim's secondary network, conferring the assets of Flash Fiber, the joint venture on the last mile that the subsidiary Swisscom shares with the former Italian telecommunications monopolist.
Leonardo (+2,55%) reduces red from the beginning of the year to -43%, from the negative peak to -58%. Fidentiis confirmed the buy rating.
FCA rose about 2% after Parliament on Friday gave the green light to an incentive package to encourage sales of Euro6 cars and electric and hybrid vehicles.
SAIPEM HAS BEEN AWARDED THE PETROBRAS SUBMARINE SYSTEM
The energy sector did well with Eni (+1%) and Tenaris (+3,5%). Saipem (+0,8%) was awarded a contract from Petrobras for the installation of a submarine system.
In Aim, money on Friulchem (+4,53%): the company has received authorization for a new patent filed in France, concerning chewable tablets, and soon extended to other European and non-European countries.
