It is very likely that the vast majority of investors who subscribed to Snap shares yesterday do not know how to use Snapchat, the app that is used to send images that self-destruct after a few hours. Almost all users of the social network, in fact, are between 18 and 24 years old. For this reason, the IPO prospectus contains detailed information for using the app. On the other hand, the new shareholders are not interested in information on profits (which do not exist and will not exist for a long time) nor on governance because, for the first time, shareholders will not have the right to vote: unless they explicitly waive , founder Evan Spiegel will lead the company for life.
These “details” serve to frame the latest apparent craze on Wall Street. Snap's shares soared yesterday: the first price was $24, 41% higher than the $17 set for the IPO (which, in turn, was up on the $14 value initially set by Morgan Stanley and Goldman Sachs who took care of the placement by 10%) but during the session the quotation rose up to 24,48 dollars, with a leap of 48% which brought the capitalization up to 29 billion dollars. Last night, CEO Spiegel, not even 5,3, found himself $XNUMX billion richer.
YELLEN SPEAKS TONIGHT: GREEN LIGHT AT RATES RISE
This story also helps to explain the atmosphere in the US markets. But also the change of pace of the Federal Reserve bankers, who, abandoning the traditional prudence, unrestrainedly flaunt the need to raise rates as soon as possible. While awaiting what Janet Yellen will say tonight, the last to speak before the FOMC meeting of 14-15 March, was Lael Brainard: we need to act quickly, also because, compared to a few months ago, the international scene is calmer , but Wall Street, in full swing, risks going out of order. A rate hike in mid-March is given by operators at 74%, only last week it was given at 30%.
INFLATION RISES IN EUROPE, BUT DRAGHI DOESN'T GIVE UP
The European markets, on the other hand, are focused on the next meeting of the ECB (March 8). The surge in inflation, which has risen to 2%, combined with the strong recovery of the economy, has brought grist to the mill of those, such as Jens Weidmann, who are calling for a halt to securities purchases. But the majority are with Mario Draghi: the surge in prices almost exclusively concerns oil, core inflation is still at 0,9%. Above all, no one, including the Bundesbank, feels like starting a squeeze on the eve of a very high-voltage electoral round: it starts in the Netherlands in ten days, then it will be France's turn. In short, there is an air of respite, with great benefits for Italian banks and companies.
TAX BLIZT ON CATERPILLAR (-4,3%)
The US stocks have kicked back after Wednesday's jump. The S&P 500 index fell 0,59% below 2.400 points. The Dow Jones (-0,53%) resists above 21.00 points (21.002,97), Nasdaq -0,73%. Futures on Standard & Poor's were also down this morning (-0,2%).
Wall Street has now acknowledged that the era of near-zero borrowing costs is over, the yield on the two-year Treasury Bill is at levels not seen since 2009 at 1,31%, from 1,29% . The 2,48-year trades at 2,44%, from XNUMX%.
Caterpillar is down sharply (-4,3%): the Illinois Attorney General has ordered the search of three of the group's offices. It seems that the investigation concerns tax evasion on profits arriving from the Swiss office.
OIL WEAK, BITCOIN SURPASSES GOLD
Gold loses 0,6%, to 1.241 dollars an ounce. For the first time the quotation of the virtual currency, Bitcoin, traded at 1.265 dollars (+200% in one year) exceeded that of the yellow metal.
The price of oil marks a drop of 1,6% with Brent at 55,4 dollars a barrel. Russia cut production less than promised in February.
Exxon Mobil, after a brilliant start at +1%, reduced the increase to +0,34%. In Piazza Affari Eni, up for a long time during the day, closed unchanged. Kepler Cheuvreux confirmed the buy judgment, target price 18 euros after the presentation of the strategic plan. Saipem -0,7%. Tenaris -0,6%.
JAPAN CELEBRATES THE RETURN OF INFLATION: +0,1% IN JANUARY
The Asian lists are heading for a weak closing, in the wake of the slowdown on Wall Street: Tokyo -0,7%, despite the exploits of Nintendo (+4,1%) after the start of sales of the new console. Hong Kong (-0,5%) and Shanghai (-0,2%) also fell. The judgment of the EU Commission on the merger between Chem China and Syngenta is imminent.
The Korean Stock Exchange is holding back: Beijing has suspended tourist visas for Seoul for fear of missile attacks from North Korea.
For the first time since the beginning of 2015, the Tokyo consumer price index closed with a positive sign: +0,1%. This is good news for Prime Minister Shinzo Abe, on the eve of the opening of the contract season. Unemployment fell to 3% (from 3,1%), while the fall of the yen against the dollar is translating into a strong boost to exports. But these positive factors do not seem to lead companies to the most awaited move by the premier: the increase in wages, essential to boost consumption.
PIAZZA AFFARI STILL TOP LIST, TODAY THE GDP OF THE FOURTH QUARTER
Yesterday too Milan was the most toned stock exchange on the Old Continent. The Ftse Mib index closed up 0,4%, at 19.441 points. Thanks to the increase over the last two days, the FtseMib has returned to a positive performance since the beginning of 2017 (+1%) and has set off in pursuit of the best stock exchanges in the Eurozone. Frankfurt's Dax gains almost 5%.
Today Istat will publish data on Italian GDP for the fourth quarter. The price lists of Paris (+0,1%), Frankfurt (-0,1%) and London (-0,01%) are less tonic. A weak opening is expected for European stock exchanges this morning.
CAPITALS LEAVE SAFE HARBORS: BTP AND OAT IMPROVE
The latest positive data on the growth of the US economy and on the trend of inflation in Europe contribute to improving the climate of confidence on the stock markets. Capital comes out of the so-called "safe havens": the yield on the German Bund rose to 0,31% (from 0,28%).
The Italian secondary closed with marginal variations a session characterized by brief fluctuations and by French and Spanish auctions. The yield differential with the Bund on the ten-year stretch narrowed due to the worse performance of the German market.
The France-Germany spread fell below 60 basis points for the first time in a month, stimulated by the exposure of the electoral program by the candidate for the Elysee Emmanuel Macron.
The recovery of Piazza Affari is linked to the rebound of the banks: the Italian sector gains 0,85% under the push of Unicredit (+2,35%) which adds to the leap of more than 4% on the eve. The bank announced yesterday that the capital increase is fully subscribed for a total value of 12,999 billion euro. All the unexercised rights were entirely sold during the first session of the offer, on 27 February.
Meanwhile Fabrizio Palenzona takes a step back. The institute announced that on March 2018 “the director Fabrizio Palenzona communicated to the chairman of the bank's board of directors that he wanted to resign, with immediate effect, from the position of vice chairman. Councilor Palenzona - continues the press release - took this decision in order to facilitate the governance review initiatives planned for 13 and announced by Unicredit during the presentation of the Strategic Plan on 2016 December 2016. These initiatives are based on the analyzes carried out in XNUMX by the UniCredit Corporate Governance, Nomination and Sustainability Committee and also include the recommendation of a reduction in the number of vice presidents from the current three vice presidents to one”.
Positive Bper Banca (+0,4%), which yesterday evening signed the contract for the purchase of 100% of the capital of Nuova Cassa di Risparmio di Ferrara from the National Resolution Fund for the symbolic consideration of 1 euro. For Citigroup it is "a small deal, expected by the market" which should have "a single-digit benefit on the group's profit". Ubi +0,3%. Closure unchanged for Intesa. Banco Bpm fell by 0,2%.
A day of promotions for asset management securities, Banca Generali (+0,9%) is still benefiting from its forthcoming entry into the main basket of Piazza Affari. Fineco advanced by 1,3%, on the news that, from 20 March, the stock will be added to the Stoxx Europe 600 Index. Banca Akros reiterates its positive opinion (accumulated. Target 6,1 euro).
Among the insurance companies, Generali has little move (+0,1%). The company would have given a mandate to Bnp Paribas to sell the business in Holland, a country where it has been present for more than 140 years and where in 2015 it recorded a net profit of 5,4 million euros.
In the EMEA area, the company is also evaluating the exit from Portugal and Belgium. In the Americas area, it is evaluating the exit from Colombia, Ecuador and Panama, while Argentina and Brazil are considered strategic.
Highlights include some luxury titles. Ynap is the best blue chip with an increase of over 4% following the release of the 2016 results and the confirmation of the guidance for 2017. Brokers generally speak of numbers in line with the consensus but underline how the stock comes from a period of underperformance.
Moncler gained 0,95%, to 19,22 euros. Equita Sim increased the weight of the share in its main portfolio by 50 basis points. Mediobanca raised the target price to 24,7 euro from 22,50 euro, confirming the Outperform rating. Optimism has improved among the 24 analysts surveyed by Bloomberg: 22 recommend buying. No advice to sell. The average target has grown to 21,68 euros from 19,60 euros pre-quarterly.
On the opposite front, Luxottica dropped 1,8% in the wake of the cautious outlook provided by the eyewear group for 2017.
Positive day for industrial stocks. Leonardo's new increase (+2,2%) stands out. Equita Sim (buy, Target 13,5 euros) highlighted some ideas that arose from CEO Moretti's hearing in the Senate yesterday, starting with the intention to sell 49% of Drs to obtain the resources for new investments.
In the automotive sector, Brembo shines (+2,2%). On parity Fiat Chrysler at 10,5 euros. Goldman Sachs reduced the judgment from 20,3 to 20 euros, confirming the buy. In February, sales of the Fiat brand in Germany rose by 18,1% with a share of 2,3% on a German car market down by 2,6%. In the first two months of the year, the increase was equal to 21,4% (2,2% share) on a German market that grew by 3,5%.
Big movements ahead in the European car. On Monday, on the occasion of the opening of the Geneva motor show, Peugeot and General Motors could announce the acquisition of Opel by the French group even if, reports Reuters, some aspects of Opel's pension future still remain to be defined (deficit of 10 billion dollars) and on GM's request to prevent the brand from competing abroad against the American group's Chevrolet line.
The good results push Recordati (+1,2%), which marks a new all-time high. Banca Akros raised its target price from 33,8 to 34,4 euros, confirming the accumulated recommendation. Prysmian, on the other hand, was down (-2,7%) after the release of 2016 data.
