For once, the market offers the starting point for a bag festival. The collision between Brussels and the Italian government has been avoided. The spread it can dip below 300 for the relief of all European markets, not just Europe Business Square. In fact, it also advances Frankfurt, despite the slowdown in the Ifo index which measures the far from brilliant mood of the business world across the Rhine. But the figure, just over two weeks after the ECB directorate, adds grit to the doves' mill awaiting measures capable of offsetting the effect of the end of Qe. Rounding out the party is the recovery of oil and the revival of tech stocks.
Milano (+2,77% to 19.233 points) led the bull's charge throughout the day after trading for 2,46 billion. Optimism has also infected the other Stock Exchanges: Frankfurt + 1,45% Paris + 0,97% Madrid +1,96% and London +1,26% (waiting for the parliamentary duel on Brexit).
Record decline of spread, down to 288 basis points, from 305 on Friday night. 3,23-year Btp at 3,40%, from XNUMX% on Friday.
Downhill, up to the lows of the last two months, even the yield of the two-year BTP, to 0,75% (-15 basis points).
The credit default swap on Italian debt also fell to 251 points, the lowest since the end of September.
The month-end auction round opens tomorrow with the offer of Ctz and Btpei up to a maximum of 3,5 billion and continues on Wednesday with the offer of 6-month BOTs for 6,5 billion.
On Thursday the Treasury will offer medium-long term securities for 4-5,5 billion. In particular, a 5-year BTP (1,5-2 billion), a 1,75-year (2,25-XNUMX billion) plus two CCTEUs will be auctioned.
The president of the European Central Bank Mario Draghi he said he was confident that the discussion between the European Commission and the Italian government on the budget law could result in an agreement.
While reiterating the imminent conclusion of the QE bond purchases, Draghi, during the hearing in the European Parliament, added that “a significant monetary policy stimulus is still needed to support the further increase in domestic price pressures and developments in the medium term”. For this reason, "there are good reasons to be confident of an increase in core inflation", guaranteed the central governor, adding that "a significant degree of monetary stimulus will be maintained even after the end of asset purchases".
Saipem is the best stock in the main list with a rebound of 10,01%, thanks to the 'buy' promotion by HSBC, which reduced the target price to 4,5 euros from 4,6, and the rise in crude oil above 60 dollars after last week's decline.
Banks are also making a big splash, in the wake of the decline in the Btp/Bund spread. The Italian index gains 4,83%, almost double the European index which stops at +2,63%. 6,41% jump Where's Banca, Carige +6,25%, even better Ps: +8,3%.
But the earnings list covers the entire sector. Unicredit, Bper, This morning Exane adjusted the target price to 4,70 euros from 5,0 euros, but at the same time raised the rating to Outperform from Neutral. Bpm bank e Understanding they are between 5,54% and 4,52%. Banca Mediolanum + 4,8%.
It also shines Fiat Chrysler, up 4,98%. Union sources report that the group should focus on the production of Jeep models in Italy and on a new Alfa SUV as the first measures aimed at saturating the production lines and increasing margins in the EMEA area. Even in the USA, the share rose by more than 5% after press rumors according to which the group is considering the sale of the Comau robotic unit for up to 2,3 billion dollars.
Bene Telecom Italy, which at the end of the session accelerated to +4,61%, in the wake of the rise in the European index (+3,39%) after the news according to which the EU Commission will give the green light to the acquisition by Deutsche Telekom of the Dutch branch of Tele 2, paving the way for eventual consolidation in the sector.
The only minus signs of the Ftse Mib per David Campari (-0,8%) And Prysmian (-0,63%). The latter suffers from the fact that the Danish rival nkt (+10,51% in Copenhagen) was awarded a contract worth approximately 300 million euros for the supply of approximately 270 kilometers of XLPE offshore cables for connection to the German offshore wind farm Ostwind 2.
Aedes + 1,8% RCS Mediagroup + 9,3% Tiscali + 2,6% Fincantieri +1,4% and Technogym + 4%.
Tod’s +2,5%. The founder and president Diego Della Valle says that within a year, a year and a half, the effects of the investments in the relaunch of the company will be seen.
Italyonline +1,9%. It's official: Roberto Giacchi, former CEO of Poste Italiane, will assume the role of general manager by 5 December 2018 and that of managing director by 13 of the same month.
Cattolica Insurance +5,7%. The Senate Finance Committee has approved an amendment that introduces an anti-spread protection in favor of insurance companies.
In the United States, on the other hand, record online sales on the day of Black Friday. American consumers spent $6,22 billion, 24% more than last year. This is what has emerged from Adobe Analytics data, which signals a new historical record. The online boom was accompanied by a drop in sales in traditional physical stores: in the two days of Thanksgiving and Black Friday, sales fell between 4% and 7% compared to last year, according to preliminary surveys by RetailNext. Traffic in stores dropped even more, falling between 5% and 9%.
General Motors is up 6% to $38 on Wall Street. In the last 12 months -18%. The automotive company has announced a reorganization of its activities. The plan provides a 15% reduction in the workforce, a measure that includes cutting a quarter of executives. By 2019, two manufacturing plants located in North America will be closed.
As a result of the restructuring, pre-tax charges of $2018-2019 billion are expected for the fourth quarter of 3 and first quarter of 3,8. But that is not all. The company also announced that it will prioritize investments in electric vehicles in the coming years.
