Investments of a trillion dollars in physical infrastructure and technology. Consumption in recovery in May much more expected (+17,7%). The US is stepping up recovery efforts, but Fed Chairman Jerome Powell, before Congress, warns that the future "remains uncertain and inequality is growing". This also explains the market's prudence this morning after yesterday's run.
WINDS OF WAR OVER THE HIMALAYAS
But to cast a shadow on the rally are the winds of war which, almost suddenly, are blowing in Asia. On the peaks of the Himalayas, China and India have been clashing for weeks. Yesterday we learned of the death of twenty Indian soldiers. Meanwhile, a few thousand kilometers further on, North Korea blew up a building near the border with South Korea, which had been built to host meetings between representatives of the two countries.
In this context, the price lists of the Asian continent are slowing down. Tokyo's Nikkei is down 0,4%. Hong Kong's Hang Seng is on par, as is the Shanghai Composite. But the most involved markets are positive: Kospi of Seoul gains 0,2%. As is Mumbai, driven by defense stocks.
TOKYO EXPORT DOWN
Cold shower tonight from Japan's exports dropped to peak in May: -28%. The Dow Jones Asia Index is up 0,1%.
Brent oil is down 1,5%, at 40,3 dollars a barrel, the first drop after three consecutive positive sessions.
FROM ELI LILLY (+15,7%) A THERAPY FOR BREAST CANCER
On parity this morning the futures of the US markets after a roaring session: Dow Jones +2,04%, S&P 500 +1,90%. The Nasdaq +1,75%.
The best stock in the S&P500 index was the pharma Eli Lilly, up 15,7%, to 163 dollars, after the advances of the results obtained by one of its experimental drugs for the treatment of breast cancer. During phase three of the clinical development of Verzenio, given to seriously ill patients in combination with other therapies, there was a sharp decline in the recurrence of metastases and mortality.
But the focus is obviously on the fight against the coronavirus.
COVID-19. FROM OXFORD THE EFFECTIVE CARE AT LOW PRICE
Hope comes from London: about a third of ICU patients treated with a steroid-based drug, Dexamethasone, has recovered from Covid-19. Professor Martin Landray, from Oxford and co-author of the research, highlighted the fact that the treatment costs very little: eight patients can be treated with just over 60 dollars.
AND THE EU TODAY INVESTS 2,7 BILLION IN THE VACCINE
Today the European Commission will present the 2,7 billion investment plan for the development of a vaccine against Covid-19: the research will be financed in exchange for a series of pre-emption agreements with pharmaceutical companies to guarantee supplies for the vaccination of the EU population.
ZEW IN FLIGHT, GERMANY GAINS CONFIDENCE
In Europe too, the drive from central banks sent share prices flying, supported by a shower of fiscal incentives. Optimism has also infected the forecasts: the Zew index - based on the expectations of economists, analysts and entrepreneurs - soars in Germany, rising to 63,4 in June from 51 in May (the consensus expected 61).
TOP BUSINESS PLACE, SAVONA OFFERS PERPETUAL BONDS
Piazza Affari (+3,46%) proved to be the most lively market, closing at 19.625 points, just below the highs.
“In the European Union, more effort has been dedicated to monetary institutions and less to financial ones, with decisions and practical effects that have penalized savings”, said the president of Consob yesterday on the occasion of the annual meeting with the financial community. The president of Consob proposed the launch of perpetual BTPs tax exempt up to 2%.
ALL ABOUT THE BAGS, A STAR ON THE KERING BOARD
The other European stock exchanges are also doing well: London's FTSE 100 is up 2,97% on the eve of the Bank of England meeting. Madrid +3,23%.
Frankfurt's Dax rises by 3,27%. Lufthansa (+4,8%) has announced that it aims to reach an agreement with the unions by 22 June on the cuts of 22.000 jobs. One of the big names in online fashion, Zalando, loses ground (-5%). In Madrid (+3,23%) new increases by Inditex.
In Paris (+2,84%) Renault (+4,11%) and ArcelorMittal (+6,9%) bounced back. Kering, the parent company of Gucci, yesterday appointed actress Emma Thompson to the board.
THE SPREAD GOES DOWN, ALL ON THE BLUE CHIPS
Thanks to the climate of greater propensity for risk, the BTPs closed the session in positive territory, with the yield of the 10-year benchmark which revised its lows since the end of March. The spread between Italian and German ten-year bonds fell to 177 basis points (-3,97%), with a yield on the BTP down to 1,35%. All blue chips closed higher.
US PLANS SEND BUZZI AND WEBUILD INTO ORBIT
Leading the race is Buzzi Unicem (+9%), the cement group which counts, among other things, on a strong presence in North America. An almost 1.000 billion dollar investment plan in infrastructure works is in the pipeline and is about to see the light of day in the United States: a preliminary version could be put into circulation within days. The plan should secure the resources to renovate bridges, roads and railways. Among the potential beneficiaries there is also Webuild (+10,75%).
PRYSMIAN AND TIM RUN
Prysmian is also making progress (+5%), which generates 35% of Ebitda in the United States. In the US plan, there should also be room for 5G telephony and ultra-broadband, but Macquarie's offer for a share of Open Fiber prompted purchases on Tim (+7,76%). Enel's board of directors (+2,77%) received information regarding a non-binding offer presented by Macquarie Infrastructure Real Asset (Mira) whose object is the acquisition, in whole or in part, of the 50% of the capital of Open Fiber owned by Enel. According to the broker Equita, "a possible sale of the stake in Open Fiber by Enel could subsequently facilitate negotiations for the establishment of a single network with Tim".
To remain among the utilities, A2A was well received (+3,4%) in the aftermath of the meeting of the new CEO, Renato Mazzoncini, with the financial analysts in which the objective was reiterated "to transform the Lombard super-utility into a player and strengthen its presence in the Energy Transition”, according to Equita reports.
FITCH CONFIRMS CNH RATING
The boost from overseas also favors Cnh (+4,07%). The Fitch agency confirmed the long-term debt rating at BBB-. Fiat-Chrysler +3%. General Motors CEO Mary Barra said she was optimistic about the evolution of demand for cars in the United States. The statement was released during an event organized by Automotive News.
BPM LEADS THE BANKS RALLY, INTESA ATTACKS MASSIAH
The banking sector rallied in Piazza Affari: in the lead Banco Bpm (+7,34%). There has been talk of a meeting between the leaders of Piazza Meda and those of UBI (+4,96%), but the hypothesis of an alternative merger to Intesa Sanpaolo has left the ECB cold. The institute of Carlo Messina approved the capital increase for a fee in the service of the public exchange offer. Intesa San Paolo has accused Victor Massiah, number one of Ubi, of having violated the passivity rule established by law several times during the Ops.
The recovery of Bper (+6,57%) stands out; Unicredit also recovers (+6,62%).
Banca Mediolanum performed well (+3,32%), after the launch of the App Flowe company, which, through financial services, aims to attract millions of customers in Italy and the rest of Europe.
ATLANTIA IN THE SIGHT OF THE ANTITRUST, COUNT WANTS CDP IN ASPI
Even Atlantia rebounds (+4,2%) in the most delicate moment in its history: on 10 June 2020, the Antitrust launched an investigation against Atlantia's subsidiary, Autostrade per l'Italia (Aspi), for "alleged shortcomings information and failure to adjust the toll in some sections of the network”, informs a note. With regard to Autostrade, the proposal to the company provides for the entry of CDP and the F2I fund in the capital to avoid the revocation of the concession.
INTESA AT 6,95 OF TREVI, BOOM OF EXPRIVIA (+14%)
Intesa San Paolo entered Trevi Finanziaria (-3,04%) recently restructured through the conversion of receivables with a 6,9% stake. On the Stock Exchange, the Trevi stock has recovered more than 80% of its value in three months.
Strong progress among the mid caps Piaggio (+6,3%) and Maire Tecnimont (+4,76%).
Sale Cucinelli (+1%), despite Goldman Sachs having reduced the recommendation from buy to sell, with the target price going from 32,8 to 27,1 euros.
Among the minor titles, Exprivia rips off with a +14% on rumors about Sirti's interest in the subsidiary Italtel.
