For the first time in over a month, the victims in the US were less than a thousand. A small source of comfort also for the US markets, which closed the session in positive territory, which promises to favor the recovery of European stock markets after the very negative start of May. Donald Trump's new threats against China have not slowed the rebound, supported by the recovery of oil and, above all, by the recovery of the true masters of the US market: alone, Apple, Alphabet, Amazon, Facebook and Microsoft have come to count yesterday a fifth of the capitalization of the S&P500, 45% of the S&P100 index. The rebound of the giants, badly treated last week after the publication of the quarterly accounts, was sufficient to give oxygen to the few open Asian markets this morning.
HONG KONG +0,7%, GDP AT THE LOWEST SINCE 1974
The Hong Kong Stock Exchange (+0,7%) rebounds from -4,2% yesterday, even if the -9% recorded by the gross domestic product in the first three months of the year is the worst figure since 1974. The Strait Times of Singapore and the Taiex of Taipei. Sydney's S&P ASX 200 index shines 1,3% higher on Australia's central bank announcement day. Mumbai +1,5%. Tokyo, Shanghai and Korea stock exchanges are closed for public holidays.
THE BIG IN TECHNOLOGY BOUNCE
Yesterday evening the US markets returned to positive ground thanks to the boost from the Nasdaq (+1,23%). Both the Dow Jones (+0,11%) and the S&P 500 (+0,42%) were positive.
The leading technology stocks are in great health, from Amazon (+1,2%, but -7% on Friday) to Microsoft (+2,5%), via Facebook (+1,5%). Nvidia and Netflix gained 3%.
APPLE LAUNCHES AN 8,5 BILLION BOND
Apple (+1,4%) tonight successfully launched an 8,5 billion three-, five-, ten- and thirty-year bond issue to support the buyback plan. The strength of the demand was such as to allow the iPhone manufacturer to revise downwards the indications on the yield of the two-year share by 35 basis points.
The stability of credit is guaranteed, for large and small, public and private, by the action of the Fed, which has ensured, among other things, that in days it will begin to buy ETFs as well as instruments that have bonds below Investment Grade as their underlying. During May, the extraordinary disbursement program of loans to large companies will also come into operation.
Not only the Fed. California announced that it had obtained a $340 million loan from Washington, the first tranche of an $11 billion credit line. Illinois was also greenlit for $12,6 billion.
WASHINGTON IS 4.500 BILLION IN DEBT, OIL RISES
In 2020, writes the Wall Street Journal this morning, bond issues will rise to 4.500 billion, more than three times the previous year (1.280 billion).
The reopening of activities favors the recovery of oil. Brent is up 5% this morning to 28,4 dollars a barrel. The WTI (+3,1%) rises above 20 dollars. In Cushing, the Oklahoma town where the main North American oil pipelines cross, the oil contained in the tanks has recorded a modest increase in recent days, the smallest in the last two months.
Yesterday in Piazza Affari there were heavy losses for Eni (-4,2%) and Tenaris (-4,5%). Saipem (-2,5%) received a 280 million euro order for the construction of a gas pipeline in the Baltic Sea.
EUROPE IN RED. TODAY THE VERDICT OF THE GERMAN JUDGES
May opened up on the upside for the European stock markets, held back by quarterly earnings in deep red and by the echo of new hostilities between China and the United States. But the Eurozone may have one more problem. Today the German Constitutional Court, after an interminable investigation, will rule on the legitimacy of the purchases of securities by the ECB, pursuant to the German Constitution. It will be only the first stage of an obstacle course that will culminate in the meeting of the Eurogroup, scheduled for Friday. On the same day there will be the verdict of Moody's and Dbrs on the Italian rating: the exams really never end.
MILAN -3,7%, THYSSEN FALLS IN FRANKFURT
The start of Phase 2 does not warm up Milan. Piazza Affari dropped 3,7%, stopping at 17.035 points.
It didn't go better than the other price lists. Paris (-4,24%) is bringing up the rear. Société Générale (-8%) leads the retreat of the banks. The pdg Frédéric Oudea foresees provisions for 5 billion to face the losses of the clients. It sinks on the eve of the Total accounts (-7%).
Frankfurt is also in deep red (-3,61%). The promise of state aid slows down Lufthansa's decline (-3%), but in the meantime Thyssen Krupp falls: the sale of the lift division, the board confesses, will not be sufficient to support the steel hole.
Madrid (-3,60%) and Zurich (-2,50%) also lose out.
London -0,54%: the drop in the pound (-1,3% against the dollar) allowed the Stock Exchange to contain the downturn.
CARS: ONLY 4.279 CARS SOLD IN ONE MONTH (-96%)
Only 4.279 (-96%) cars were sold in Italy in April. In the quarter, the drop is over 50%. FCA registered 1.620 cars (-98%). It is the latest dramatic confirmation of the consequences of the black April for the economy, overwhelmed by the epidemic already signaled by the sharp contraction of the PMI indices on manufacturing activity, which plunged in Italy to the lowest levels of the last 22 years. The Bel Paese collapsed to 31,1 points, well below the boundary between expansion and stagnation, set at 50. Holland limits the damage to 41,3 points, the worst figure for 11 years.
BCE PURCHASES SAVE BTPs
At the end of the session, the BTP moved into positive territory, driven by the ECB's purchases. The Italian 1,75-year rate settled at 1,83%, from 1,78% in the morning and from 30% at the end of Thursday XNUMX April.
The spread between Italy and Germany on the ten-year segment narrowed to 232 basis points, from 241 at the start.
The dissemination of data on ECB purchases contributed to helping the BTPs, which demonstrated once again how the Central Bank in April favored the BTP over the Bund, deviating from the capital keys for the second consecutive month.
BUT FINCANTIERI TAKES OUTWARD
Fincantieri (+11,47%) brought some good humor to Piazza Affari, thus celebrating the long-sought-after order arriving from the US Navy. The US Department of Defense has awarded the US subsidiary of the Trieste-based company, Marinette Marine, a contract worth nearly $800 million for the detailed design and construction of a unit for the US Navy's new guided missile frigates, first step of an agreement that includes the option for 9 additional ships, as well as after-sales support and crew training, which will bring the total value to 5,5 billion dollars. The US Navy plans to build another 10 units, for a total of 20.
FERRARI SWENDS THEN ACCELERATES
Seat with two faces for Ferrari: the Red's stock fell by 4,6% in the morning after the first impact of the downward revision of the targets imposed by the stop caused by the coronavirus. However, the reaction was immediate: +1,5% at the end of the day. CEO Lou Camilleri said the company was in "relatively good shape and could face a prolonged slowdown." Revenue fell 3% year on year to 932 million euros. Adjusted operating profit amounted to 220 million euros (-5,4% year-on-year). In 2020, revenues are expected to be between €3,4 and €3,6 billion, with adjusted EBIT around €700 million. The order portfolio "is well beyond" 12 months.
Heavy sitting for FCA (-5,64%), which today will examine the accounts for the quarter, and for CNH (-7,56%).
ATLANTIA UNDER FIRE. ELLIOTT GOES OFF TO TIM
Utilities are weak, with the exception of Acea (+2,3%) promoted to buy (buy) by Kepler Cheuvreux analysts.
Splash of Atlantia (-6,5%). In Autostrade per l'Italia's financial report published last Saturday, the company writes that the transport ministry has asked to increase the amount of the 2,9 billion compensation proposed by Atlantia in March. The ministry also asked for acceptance of the ART tariff model and for the identification of "catastrophic" events that could cause the concession contract to terminate before its expiry.
Tim also fell (-4,5%). The Elliot fund further reduced its stake down to 5,127% from 6,97%, according to Consob updates.
Brakes after the euphoric start Diasorin (+0,1%). Rival Roche has announced that it has obtained authorization from the US Food and Drug Administration to market its test for the coronavirus. The company aims to double production by the end of the year, to over 100 million kits per month.
WEAK BANKS, BPM SIGNS AGREEMENT WITH CREDIMI
Contrast the banks: Intesa Sanpaolo -3,2%, Unicredit -5,7%. Banco Bpm performed well (+1%). The institute has decided to support Credimi, a European fintech group specializing in digital financing for businesses, for the purchase of a share of the Italianonsiferma securitization. Bfor +1%.
Unipol unchanged. The meeting approved the introduction of the increased voting system thanks to which the Coop shareholders, against a total shareholding of 48%, will have a percentage of the voting rights of almost 65%.
