It holds the government dam under the impact of the League, the mood of the financial markets wavers in the face of the health emergency. The few Asian stock exchanges that have opened their doors report sharp declines, starting with Tokyo (-1,8%). But the advance of the coronavirus epidemic has practically put the continent's price lists in quarantine: with Australia and Hong Kong closed, the Chinese stock exchanges will extend the holiday for the lunar year to 2 February inclusive. The Nikkei index lost 2%, the MSCI Asia-Pacific stock index excluding Japan lost only 0,2%, but only because the stock exchanges of China, Hong Kong, South Korea and Australia. Mumbai -0,4%.
Futures on European stock exchanges and those on the three major Wall Street indexes were down about 1% before the open.
VICTIMS RISE TO 80, BRENT BELOW 60 DOLLARS
Premier Li Kequiang will be in Wuhan today, the key center of the industry transformed into a ghost town, where people do not work, there are no cars and meeting places are closed. The list of victims has risen to 80, 2.744 confirmed cases.
In this context, oil collapses and the migration towards safe-haven assets resumes. Brent fell below 60 dollars a barrel this morning, US crude oil just above 52 dollars with losses for both exceeding 3,5%.
Operators look at the emergency with relative detachment: “We expect – writes Td Securitirs – a more violent impact than on the occasion of Sars, because it is concentrated in a key season for consumption. But the effect will be short-lived: fear leads to overestimating the actual risks in the short term”.
THE YEN ADVANCES, THE EURO RECOVERS
The yen recovered to 108,73 against the dollar, a three-week high. The yuan weakens to 6,9625 against the dollar. The euro trades at 1,1033, slightly recovering from Friday. Gold rises again to 1.588 dollars an ounce.
Ctrip, the most popular travel booking site in China, has announced that 37 airlines and ten hotel chains have said they are ready to refund reservations.
US Treasury prices are on the rise, with 1,627-year yields hitting a three-and-a-half-month low at XNUMX%.
The result of the highly anticipated electoral duel in Emilia-Romagna reassures the markets about the stability of the executive. The centre-left clearly prevails (51,3%) against 43,7%. But the collapse of the Five Stars, which have slipped below 5%, will certainly have consequences on the national scene.
BREXIT HAS STARTED, THE FED HAS MEETED
Net of elections and epidemics, the week features several important events, starting with Brexit, which will officially kick off next Friday. The divorce process will take up the next eleven months. The Bank of England will decide this week whether or not to lower rates pending events.
Wednesday will be the turn of the Federal Reserve, which will hold its first meeting of 2020. The forecast is that Jerome Powell, despite invitations from Donald Trump, will not intervene on the cost of money, even if US GDP in 2019 grew by only 2,1. XNUMX%, less than wanted by the president.
TRUMP STRIKES ON DUTIES AND CUT TAXES
Together with the impeachment procedure underway in Washington, the moves of the Trump team in view of the probable re-election in November are holding the scene. Commerce Secretary Wilbur Ross anticipated that the US will react with the imposition of high tariffs if the EU proceeds to impose restrictions on imported energy to promote the green economy. Treasury Secretary Stephen Mnuchin, leaving Davos, confirmed that the US administration is preparing to launch new robust tax cuts, with the aim of favoring the middle classes: the budget deficit will rise to 4,7%.
REVIEW ACCOUNTS FOR 145 US COMPANIES. IT STARTS WITH APPLE
The attention of the markets will turn above all to the outgoing accounts during the week. There will be no less than 145 companies in the S&P 500 index that will announce their accounts for the quarter. As usual, Apple appears on the front page, which tomorrow should benefit from the return of interest in the Phone. The next day there will be a replica of Samsung's rivals. But from tomorrow analysts will be called upon to interpret the numbers of a large part of corporate America: Amazon, Microsoft, Facebook but also the more traditional champions of the economy, from Boeing to Mc Donald's and Startbucks.
FCA REACTS TO GM, THE SALE OF INWIT ADVANCES
Rain of data this week on the Italian economy: the 2019 GDP data will be published, but also the numbers relating to inflation and employment. The usual visit by the inspectors of the Monetary Fund ends.
On the corporate front, it should be noted that FCA has filed a motion in the Detroit District Court asking it to dismiss General Motors' allegations of alleged bribery of union representatives to drive up the automaker's labor costs.
Telecom Italia-Inwit chapter. Tim and Vodafone Italia have sent potential investors the 'teasers' for the expected sale of 25% of the tower company, writes Il Sole on Saturday, adding that the two companies expect to be able to proceed with the selection of the interested funds at the end of March whether the antitrust process will end as hoped.
