In the first three weeks of 2021, companies raised 400 billion dollars on the markets, taking advantage of the "generosity" of central banks, mobilized to support the economic situation. A year ago the collection had been 170 billion. In terms of fundraising, IPOs and SPACs stand out, the corporate vehicles set up to accelerate market access, with the aim of taking advantage of favorable conditions for demand. The phenomenon is at the center of a series of articles in the Financial Times who warn against the "exuberant debut" of 2021 which contrasts with the performance of the real economy affected by the pandemic and, in particular, by delays and setbacks in the development of vaccines. Not surprisingly, the newspaper's investigation coincides with the start of the first Fed meeting of the year. Meanwhile, still in Washington, the debate on the level of economic stimulus is heating up.
It is not the right climate to create difficulties for the collection of the Treasury, or to open a political crisis in the dark. But, having failed in the recruitment operation for the "responsible", a reluctant Giuseppe Conte will resign this morning in the hands of the Head of State, opening a crisis in the dark. The markets are paying for the uncertainty about the outcome of the first parliamentary battle of the Biden era.
THE NASDAQ MAKES A RECORD, THEN IT STOPS
Wall Street futures are down, including that of the Nasdaq, which rose yesterday to new all-time highs: +0,69% to 13.635. Down the Dow Jones: -0,12%. S&P 500 +0,36%.
The great highlight on the Moderna list (+10,3%): its vaccine is effective against the South African variant.
The MSCI Asia Pacific index is down 0,8% this morning: for the moment it is only an adjustment, given that it is up 9% year-to-date.
BEIJING DRAINS LIQUIDITY, DOUBTS ABOUT QE IN JAPAN
Tokyo's Nikkei loses 0,9%. Minutes of the Bank of Japan's latest meeting, released tonight, show some senior executives are beginning to limit themselves after years of expansion, with more than one member saying they would welcome more flexibility in buying ETFs, the report said.
The price lists of Greater China are weak. Hong Kong's Hang Seng is down 1,8%, Shanghai's and Shenzen's CSI 300 down 1,6%. Tonight, China's central bank drained 78 billion yuan, equivalent to $12 billion, from the market. The operation, carried out on an open market, comes after the media started a debate on the danger of financial bubbles forming, in shares and in the residential market. The governor himself, Yi Gang, has spoken out in favor of a greater balance of risks.
KOREA'S GDP RISES BY 1,1%.
Kospi of Seoul -2%. Tonight, the Central Bank of South Korea announced that in the fourth quarter, GDP rose by 1,1% compared to the third quarter, slightly better than expected. Following the acceleration, driven above all by demand from abroad, the same entity revised its estimates for 2021 upwards, to +3%, from the previous +2,8%. In 2020, GDP fell by 1%. Capital Economics expects a 5% jump in GDP this year. The country's authorities expect to arrive in September to have 70% of people vaccinated.
Brent oil down 0,6% to 55,4 dollars a barrel. Not only is crude oil in the North Sea going down, all raw materials are falling back to a certain extent: we are playing in advance, in anticipation of a slowdown in Chinese demand, the one that has been driving prices upwards for months.
MATTARELLA STARTS CONSULTATIONS
The calendar of Italian government crisis officially leaving soon. According to practice, Mattarella should accept the resignation with reserve, inviting the premier to remain for ordinary administration. The consultations should last a couple of days. The first to be received at the Quirinale, between this afternoon and tomorrow, will be the presidents of the Chambers, then all the parliamentary groups.
GERMANY, ACHTUNG: IFO IN FALL
The Ifo indices on the economic conditions of Germany, well below forecasts, penalized somewhat all the European stock exchanges, which fell to their lowest level for two weeks. The gauge of German business confidence dropped from 92,2 points in December to 90,1 points in January, to its lowest in six months, as stressed by the president of the institute Clemens Furst. A trend that increases uncertainty about the European recovery, together with delays in the delivery of vaccines. A problem that has led the European Commission to ask pharmaceutical companies for clarity on distribution, to verify that consignments destined for EU states are not diverted elsewhere. The new restrictions against the pandemic and the uncertainties around vaccinations have simply postponed and not derailed the economic recovery in the euro area. This was stated by Christine Lagarde, president of the European Central Bank. “The route appears to be slightly delayed, but it shouldn't be compromised,” Lagarde said.
MILAN PAYS THE STOP TO THE MERCK VACCINE
Milan (-1,6%) slips below 22 thousand points (21.735). The index, as in the rest of Europe, veered decisively towards the red after a rather quiet first part of the session. The announcement by the pharmaceutical giant Merck that it will not complete the development of its anti Covid-19 vaccine has weighed.
EDF FALLS IN PARIS: -15,6%
In the rest of Europe, Frankfurt lost 1,62%. Paris is also bad (-1,57%). Brussels has rejected the French proposals on tariffs to be applied to Edf on nuclear energy. The state giant leaves 15,6% on the ground.
Madrid -1,73%. Eni gas e luce has acquired from the Spanish group Pitna 100% of Aldro Energía Y Soluciones, active in the market for the sale of electricity, gas and services to residential customers which has around 250 customers in Spain and Portugal.
London -0,8%. The London index slips after the UK's health minister said there are 77 cases of the South African variant of Covid-19 in the UK.
THE BTP HAS NOT SUFFERED FROM THE CRISIS, THURSDAY 8,75 BILLION AT AUCTION
The BTPs accelerate towards the end and comfortably archive the first session of a hot week in positive territory due to developments related to the government crisis.
The spread between Italian and German ten-year bonds fell to 123 basis points (-1,57%), while the BTP rate fell to +0,64%
Meanwhile, the market is awaiting the month-end auction round which kicks off today with the placement of the Ctz and the Btpei for a maximum of four billion euros. The rates of the zero coupon bond are seen to have risen compared to the all-time low of the placement at the end of November.
At Thursday's auction, the Treasury will offer up to 8,75 billion euros in 5- and 1-year BTPs and Ccteu.
STELLANTIS PULL THE BRAKE. THE DISTRIBUTION OF FAURECIA HAS BEEN STARTED
After the +7,57% of its debut exactly one week ago, Stellantis opens the week by pulling the brakes again with the third consecutive red sign, closing with the worst performance of the Ftse Mib down by 4,65% to 12,624 euros . Despite the fall, analysts' assessments remain favourable. Intesa San Paolo confirmed the buy recommendation and the target price at 17,8 euros. Equita Sim instead confirmed the buy recommendation and the target price at 18,7 euros.
The company has published the notice convening an extraordinary shareholders' meeting to approve the distribution to holders of its ordinary shares of up to 54.297.006 ordinary shares of Faurecia and 308 million euros, which is the proceeds received by Peugeot for the sale of Faurecia common stock in October 2020.
INDUSTRIAL FIRE, HOLDS STM
Heavy the thud of Cnh Industrial (-4,7%). Other industrialists also fell sharply: Leonardo -2,90%, Pirelli -2,26%. Stm holds (+0,15%), which benefited from the hypothesis of semiconductor price increases.
Moncler also loses momentum (-2,73%).
INSIDER TRADING, CONSOB INVESTIGATIONS CATHOLIC
Sharp fall for Unicredit (-4,1%), Intesa San Paolo (-3,28%) and Banca Mediolanum (-3,04%).
Consob has launched investigations to verify whether the agreement between Cattolica and Generali was also concluded thanks to an abuse of privileged information. The authority has asked both companies for a detailed reconstruction of the process that led to the partnership.
Among the few positive titles, Diasorin stands out against the trend, which thanks to its trust in diagnostic tests scores a convincing +3,03%. The utilities also performed well: Italgas +1,48%, Terna +1,47%, Hera +0,7% and Acea +0,48%.
MAXI ORDER FROM TAIWAN FOR ENERGICA MOTOR
In Aim shines Energica Motor Company, an international leader in the sector of high performance electric motorcycles, which has received an order for all models in the Energica range, for a total value of 836 thousand euros from the Taiwanese importer Russ Tiger. With this record order, the Company adds an additional 14% of its entire 2020 turnover.
