A double disappointment slows down the charge of Taurus. First Johnson & Johnson (-2,3%) then Eli Lily (-2,9%) announced problems that forced the two Big Pharma to suspend research for the longed-for Covid-19 vaccine. The news cooled the price lists, held back by the results of JP Morgan and by the presentation of new Apple products, which held no surprises. Hence a quiet session both in the US and in Asia, awaiting the twists that the race for the White House and Xi Jinping's announcements in Shenzhen could reserve.
TODAY XI JINPING LAUNCHES THE YELLOW SILICON VALLY
But the European front is also heating up in view of tomorrow's Council, crucial both for Brexit and for the European Union budget. Many unknowns that favor the attention for safe haven assets, from the dollar to our Btp, a welcome change.
Stock markets in Asia Pacific are little moved, uncertain about the path to take: the indications to follow are conflicting, Wall Street futures are up, albeit slightly.
Tokyo's Nikkei gains 0,1%. Hong Kong's Hang Seng -0,2%. Shanghai Composite -0,5%. The Csi index (which also includes Shenzhen) grew by 17% this year, the total value is just over 10 trillion dollars.
President Xi Jinping's visit to southern China begins today, a tour that should culminate with the announcement of the birth of a gigantic technology park in an area that also includes Hong Kong and Macao. Xi will speak shortly in Shenzen: his speech should confirm the centrality of high tech in the five-year plan starting in January.
JP MORGAN AND APPLE DISAPPOINT US EXCHANGES
Yesterday the session of the US stock market ended lower: S&P 500 -0,6% Dow Jones -0,55%. The Nasdaq also fell, albeit only by 0,1%, due to the deterioration in Apple's final, down after the presentation of new products, a new series of iPhones and a loudspeaker. The stock lost 2,5% because two models of the iPhone 12 cannot be reserved until November 6 and because an evolution of the AirPods was also expected. According to the New York Times, the limit lies in the speed, which is slightly higher: in short, the 5G of the Apple disappoints expectations.
Wall Street was also weighed down by JP Morgan (-1,6%) and Citi (-4%), the two major banks that yesterday presented their results for the quarter, good but held back by the drop in intermediation margin.
EVE OF BATTLE OVER EU FUNDS
The euro dollar trades at 1,174, little moved, after yesterday's drop of 0,6%. Yesterday the European Commission announced that it has extended the extraordinary state aid regime to mid-2021.
But the crux of EU funds remains the respect for the rule of law. Hungary and Poland, especially the latter, threaten to blow everything up if the rules wanted by Holland and other countries are included in the regulation.
THE ZEW FREEZES THE PRICE LISTS. FOR THE IMF, ITALIAN GDP -10,8%
The cold shower comes from the north. The Zew Index relating to the month of October, on expectations and on current activity, signals that Germany is struggling to restart. Expectations show a deterioration and stand at 56,1 points against expectations of 72 points and a previous figure of 77,4 points. For the Bel Paese, the sad but expected notes come from the Monetary Fund: the forecasts for the global economy are "slightly less worrying" because rich countries and China are restarting, but Italy, despite a slight compared to spring, it remains the rear among the advanced countries: the Italian GDP goes to -10,6% from -12,8% at the end of June, but in 2021 the recovery will be less robust (+5,2% from + 6,3%).
BUSINESS PLACE -0,81%. BUNDESBANK ACHTUNG FOR BANKS
Piazza Affari lost 0,81% and closed at 19.558 points, more or less in line with Frankfurt (-1%), Paris (-0,65%), Madrid (-1,1%) and London (-0,51. XNUMX%).
The Bundesbank warns that German banks should prepare for an increase in insolvencies, with the coronavirus crisis pushing already troubled companies towards the brink. Germany's central bank said corporate insolvencies could rise more than 35% in March to more than 6.000 a quarter.
ONLY TLC AND UTILITIES GO UP
Down the travel and leisure sector, banking and insurance. Only two European sectors are trading slightly higher: telecommunications and utilities.
Airbus dropped 3% after JPMorgan downgraded the stock to 'underweight' from 'neutral'.
British clothing chain French Connection Group slips 18,4% after reporting a contraction in first-half sales amid the virus.
RECORD AUCTIONS FOR BTPs: SPREAD AT 116, TEN YEAR AT 0,61%
The Italian secondary closed mixed, with the short-term part of the curve negative and the longer part rising in one session which saw new historic lows in medium-long term auctions (3,7 and 30 years).
BTP futures maturing in December closed just over the 150,00 threshold, while the Italy-Germany spread on the 10-year segment dropped to 116 basis points during the session, the lowest since the end of April 2018.
The 0,61-year reference rate, on the other hand, has continued to decline and has dropped to XNUMX%, a new all-time low.
The 2-year BTP rate closed at -0,342%, not far from the historic low reached in December 2017 at -0,371%.
ASPI, FROM BLACKSTONE AND MACQUARIE AN OFFER FOR 88%
Turn in sight for the Autostrade. A consortium was formed between Cdp, the American fund Blackstone and the Australian fund Macquaire to acquire the control package of ASPI from Atlantia, equal to 88%. And in confirmation of these rumors, Atlantia itself yesterday evening issued a statement in which it says it is willing "to evaluate a possible proposal from CDP, together with other national and international investors, for a possible agreement relating to the purchase of the entire share package of the subsidiary Autostrade per l'Italia, suitable for ensuring the adequate market valuation of the equity investment”. The company controlled by the Benetton family and led by Carlo Bertazzo has thus granted an exclusivity period for negotiation with the CDP consortium until Sunday 18 October.
PADOAN FOR PRESIDENT IN UNICREDIT (-3,66%)
Still in deep red Bper (-5,12%), grappling with the capital increase. Banco Bpm - 3,08%, despite Citi raising its target price.
Unicredit -3,66%. the CEO Jean Pierre Mustier wants to speed up the plan for the separation of Italian and foreign assets which could, according to Il Sole, lead to a Board of Directors by the end of the year even if there is still no unanimous consent from the board. The Equita broker is skeptical about this plan: "We believe that the chances of realizing a project of such a large strategic scope are rather low in the short term, as it could hardly be approved by a board of directors expiring to be renewed in April". The council then co-opted the former economy minister Pier Carlo Padon in view of his appointment as president.
MEDIOBANCA 3,7%. THE PROXIES STAY WITH NAGEL
Mediobanca -3,7%. The ISS proxy adviser suggests to the Piazzetta Cuccia shareholders to vote for the list presented by the outgoing board for the renewal of the board, in which the names of the CEO Alberto Nagel and the president Renato Pagliaro are confirmed.
In clear contrast Banca Mps (+8,06%) after the completion of the securitization transaction as part of the "Hydra Project" for the disposal of non-performing loans in favor of Amco.
Generals -0,8%. Caltagirone has exceeded 5%. Among industrialists, CNH Industrial +1,3%. JP Morgan raises its target price to 10,5 euros after data on tractor sales in the USA which have risen by 22% per annum. Leonard -2,2%.
The oil and oil service sector is still down: Saipem -3,64%, Tenaris -2,48%, Eni -1,95%.
RONALDO POSITIVE: JUVE LIMITS THE DAMAGES
The news that Cristiano Ronaldo has tested positive for Covid-19 caused a shower of sales on Juventus stock, which fell by 7% before recovering in the final to -2,22%.
TINEXTA (+12%) ENTERS CIBERSECURITY
Tinexta (+12%) announced the acquisition of three companies active in information security. Put together, these three companies generated revenues of just over sixty million euros in 2019, with an Ebitda of 6,7 million. The company chaired by Enrico Salza paid multiples between 10 and 11 times the EBITDA. Cybersecurity will account for more than half of consolidated revenues next year.
Autogrill -9,48%: Citi lowered its recommendation from neutral to sell, with a target price set at 2,5 euros.
Cementir, on the other hand, grew (+3,44%), after the company launched the buy-back plan for a maximum equivalent value of 60 million euros, equal to 6,5% of the current stock market value .
