Carlés Puidgemont, a philologist lent to Catalan independenceism, saves honour, but does not close the doors to Madrid. "I take note of the results of the referendum of October XNUMXst - he said in Parliament - and I assume the mandate of the people so that Catalonia proclaims itself an independent and republican state". But, in the name of respect for the government in Madrid, Puigdemont asked Parliament "to suspend the declaration of independence in order to start a dialogue with the government, which takes place on both sides under the banner of responsibility and respect".
In short, after the demonstrations and before other dangerous confrontations in the streets, the difficult season of negotiations begins. For now, the market is content: the euro, recovering throughout the day thanks to the rebound in German exports (and in Italian industrial production), takes another step forward: 1,1825 in the evening.
THE QUARTERLY CAMPAIGN TAKES OFF TODAY WITH DELTA AIRLINES
The drop in the dollar allowed the Wall Street indices to rally again by exploiting a rare circumstance: the stronger-than-expected growth of the global economy in 2017 (3,6%) and for next year. A sign of good wishes on an important eve. Tonight, in fact, the quarterly season will kick off.
The honor of the first one no longer belongs to Alcoa (split in two) but to Delta Airlines, but soon after the big caliber will enter the scene: none other than BlackRock. In the evening the minutes of the Fed will be published. Thursday will be the turn of JPMorgan and Citigroup and Friday of Bank of America and Wells Fargo. In the meantime, the full nominations for the succession to Janet Yellen are accelerating: Kevin Warsh (too hawkish) loses support, the market is rooting for the soft Republican Jerome Powell.
FAST RECORDS FROM TOKYO TO TAIWAN
Beautiful building on Asian price lists, on the eve of important political appointments. China is on its way to the Party Congress, Tokyo in the elections on the 22nd (premier Shinzo Abe is the big favourite). The Taiwan stock market came to light this morning, returning to business after four days of closure for holidays: the reference index of the Taipei Stock Exchange rose by 0,8%, the highest in the last 27 years.
Seoul's Kospi index gains 0,7%, a step that brings it close to the record level reached in July. The Tokyo Stock Exchange is at its highest level in the last 21 years: Nikkei index +0,3%. In China, the CSI300 index of the Shanghai and Shenzhen stock markets rose by 0,5%. Hong Kong +0,1%.
WALL STREET, RECORD No. 47. FLY WAL-MART
Also thanks to Catalonia, the quarterly "harvest" promises good news for Wall Street. The Dow Jones index (+0,31%) thus established a new absolute record, the 47th of 2017 for the US stock exchanges. S&P 500 (+0,23%) and Nasdaq (+0,11%) also performed well. The president's controversies with members of Congress, especially from his party, continue but, judging by the newspapers, public opinion is more focused on the outing of Ivanka, Trump's first wife ("the one there - he said referring to Melania - that's not Mrs. Trump”), or the discovery of Hollywood radical producer Harry Weinstein's sexual harassment of Angelina Jolie and Gwyneth Palthrow early in their careers.
In the basket of blue chips, Wal-Mart stands out (+4,47%). On the eve of the shareholders' meeting, the company anticipated some elements of the new business plan. Among the most relevant aspects are the estimates on the growth of online sales (+40%) and a buyback plan worth 20 billion dollars.
ARABIA CUTS, SUPER OIL. SAIPEM SUPERSTAR
Lively oil: Wti up 1,34 dollars to 50,92, Brent advanced by 78 cents to 56,57 dollars a barrel. Prices were supported by the news that Saudi Arabia will reduce production in November. Securities in the sub-fund rise by an average of 2%.
Eni unchanged. Analysts at Tudor Pickering, a Houston merchant bank that provides services to the sector, started hedging the stock with a Buy rating and a target price of 16 euros, promising a potential gain of 15,6%.
Saipem accelerates in the final with an increase of two points to 3,654 euros. The group announced that it has been awarded new contracts in the onshore E&C segment in Chile and Mexico for a total value of approximately 350 million dollars. Saras (-3,7%) loses ground after Macquarie's downgrade.
The wait for Carlés Puidgemont's speech at the Barcelona Parliament conditioned the session of the European stock exchanges. Starting with the most fragile. Despite the positive opinion of the Monetary Fund, the EU supervisory plan on the absorption of non-performing loans, a particularly sensitive issue for Italian banks, contributed significantly to putting the markets in a bad mood.
Not surprisingly, with the obvious exception of Madrid (-0,92%), Milan was the worst place: the Ftse Mib index dropped 0,63%, at 22.335,91 points. Limited losses in Frankfurt (-0,21%), almost nil in Paris (-0,04%). Outside the Eurozone, London closed up 0,4%. The Zurich Stock Exchange was also positive (+0,08%).
Requests for liquidity in the ECB's seven-day loan increased sharply, rising to 21,343 billion from 3,248 billion last week, in a week marked by tensions over the separatist initiative in Catalonia.
Meanwhile, a compromise is looming in Brussels on the issue of non-performing loans. Today, anticipates Reuters, the Commission will propose a list of measures it intends to propose in the spring on how to reduce the non-performing loans of banks in the area - according to a draft document - in a move that could slow down similar action by the European Central Bank. In essence, the commission proposes to change the rules for banks from the spring "in relation to the possible introduction of minimum levels of provisions". The main difference, however, lies in the times, which are much longer and more uncertain in the Commission (each proposal must be approved by the individual Parliaments).
ITALY: GROWTH IMPROVES, SUFFERING DOWN
For the Italian economy, the growth prospects improve this year and substantially confirm those for the next, just over 1%. This is the opinion of the International Monetary Fund, summarized in the six-monthly report "World economic outlook", where the forecast for the national gross domestic product rises to +1,5% from the +1,3% of July expectations for 2017, for then decelerate to +1,1%.
Meanwhile, Italy's GDP rose by 1,5% in August, the sixth increase in seven months. A much more positive result than forecasts and even more brilliant given that Emmanel Macron's France is trudging along: chapeau.
Italian secondary in red, at the end of a session that opened and ended with the minus sign, dominated by the expectation of news from the Catalan autonomists front. Signs of tension in Italy too, after the request for confidence in the new electoral law.
DEAR, TODAY THE AUCTION BOT
The mid-month auctions of the Treasury open today, offering 6 billion of the October 12 2018-month BOT on the plate. On the MTS gray market, the new security was traded on the gray market at a rate of -0,314% from -0,326% of auction in mid-September, when the yield rose to its highest level since mid-May. The bund spread widened to 175 points from the previous 173.
Piazza Affari continues to suffer from bank pain. The Italian banking index fell by 1,24% against a 0,27% drop in the European sectoral Stoxx. The new guidelines of the European Supervisory Authority on the management of non-performing loans risk destabilizing the entire sector, just when the credit industry, thanks to the restart of economic activity, is making good progress. Bank of Italy data released yesterday show that in August, loans to households and businesses rose by 1,1% on the year, while NPLs fell by 6,5%, to 172 billion euro: a new low from July 2014 at gross level and from March 2013 at net level.
SALE CARIGE, THE FLIGHT OF CATTOLICA CONTINUES
Intesa Sanpaolo is down by 1,4%. Compagnia Sanpaolo sold 150 million shares through a flash sale: investors bought the shares at a 5% discount. Ubi +0,4%, Mediobanca -1%. In contrast Carige, which finished the session up 9,13% in the wake of the news on adhesions to the Lme plan on subordinated bonds, which fuel expectations on the positive outcome of the operation, the first fundamental element of the broad strengthening project asset set up by the Ligurian institute. Banca Intermobiliare lost 7,1%.
In the meantime, the Buffett effect on Cattolica Assicurazioni continues: +3,6% to 8,92 euros, on levels it has not seen since October 2014. In addition to the boost guaranteed by the entry of the Saggio di Omaha there is that of the Cariverona Foundation, shareholder with 3,43%, which left an open door to the possible transformation of the Veronese company into a joint stock company, postponing any decision to the board of directors and the shareholders' meeting.
MEDIASET FLAMES ON, LVMH PUSHES LUXURY
Mediaset is inflamed in the final, which earns 3,5%, reaching 3,27 euros. Stock market rumors indicate that Vivendi could pay up to one billion euros in cash and shares to close the Mediaset Premium affair.
Telecom Italy -1%. The Minister of Economic Development, Carlo Calenda, is in favor of using the golden powers on Telecom Sparkle, in the context of the proceeding against Vivendi.
Atlantia lost 1,4% after Kepler Cheuvreux cut the judgment to hold from buy while the market still does not rule out the possibility of a counter-offer on Abertis which could lead the Italian group to revise its offer upwards. Equita Sim, on the other hand, raised the target price to 29,6 from 28,7 euro (rating buy).
The entire European luxury sector was positively affected by the above-expected results unveiled by LVMH on Wednesday evening. Moncler rose by 2,47%: Jefferies raised its target price from 24 to 27,5 euros, confirming the buy recommendation. Analysts think the stock presents an interesting entry point. Ferragamo +0,75%.
