The euro is holding back (but not too much) after the outcome of the elections in Catalonia. The single currency fell to 1.1817 against the dollar before rebounding to 1,185. The pro-independence front achieved a small but decisive advantage (70 seats, over the 68 needed for an absolute majority) by inflicting a crushing defeat on Mariano Rajoy. The 4 seats of the Cup, an extreme left movement, will be necessary to form a majority, a circumstance which makes it more difficult for clubs that emigrated in recent months to return to Barcelona. The first party, however, is the centrist unionist Ciudadanos, with 37 seats. Behind, at 34, the pro-independence 'Junts per Catalunya' of former president Carles Puigdemont, who fled to Belgium.
FROM DRINKS TO BLOCKCHAIN: +500% WITH THE NEW NAME
However, the markets are not only looking at the Catalan crisis and its effects on Spain. The latest news on Bitcoin arouses more interest. After all, trading on cryptocurrencies exceeded 50 billion dollars on Wednesday (data from CoinMarket), more than what was traded by the New York Stock Exchange. The growth in volumes coincided with a sharp fall in prices, which dropped overnight to 14 dollars (against 19.666). But the attention remains very high, as evidenced by an episode that closely resembles the fever of the Internet Bubble: an American producer of fizzy drinks, the Long Island Iced Tea Corporation, posted a 500% increase on the Nasdaq yesterday after changing the name in Long Blockchain Corporation, promising to “develop innovative business models”.
FINANCE BACKS WALL STREET, SLOWS DOWN T BOND
Earnings contained last night on Wall Street, busy deciphering the rest of the tax reform (503 pages): financials are still on the rise (+21% since January): Goldman Sachs +2,3%, JP Morgan +1,6%. Utilities are under pressure (-1,2%).
The Dow Jones rose 0.23% S&P 500 +0.20, the Nasdaq nearly flat +0,06%. The run of the T-bond 10 slows down to 2,482%.
OIL ON THE RISE: CHEVON FLIES, SAIPEM AT THE TOP
Energy also stands out: Chevron (+3,3%) after the broker Cowen & Co. raised the target to 160 dollars (against a quotation of 125).
In Asia, the stock markets are starting to close the week with a moderate rise, starting with Japan: Nikkei index +0,1%. Hong Kong +0,3%, Shanghai-Shenzhen -0,1%, Seoul +0,4%, Mumbai +0,4%.
Brent-type oil reached its fourth consecutive rally last night, trading at $64,7 a barrel this morning, down 0,2%.
In Piazza Affari, a new leap for Saipem +2,6%, best stock of the day. Tenaris was also brilliant (+1,53%). Eni +1%.
EUROPEAN PRICE LISTS UP, MILAN +0,6%
The positive opening of Wall Street pushed the European stock exchanges upwards yesterday afternoon, after a flat start, conditioned by the strength of the single currency against the dollar traded in the afternoon at 1,186 dollars (from 1,1881 yesterday) and against the yen at 134,59 ,XNUMX.
Piazza Affari closed up, in agreement with the other European stock markets: Ftse Mib index +0,57% at 22.235, recovering from the low it had at the start of 21.999 points. Since the beginning of 2017, Milan has maintained a gain of around 16%.
The other European stock exchanges also recovered, although conditioned not only by the pre-holiday climate but also by the climate of anticipation linked to the elections in Catalonia: Paris +0,62% Frankfurt +0,31%
The best place in the Eurozone was Madrid +0,98%. Rises above the percentage point for London and Zurich, outside the euro area. Eurozone consumer confidence rose to 0,5 in December, according to the European Commission's flash estimate. In the European Union as a whole, sentiment rose by just 0,1 points to -0,6.
PORTUGUESE STOCKS BEAT THE BTP AGAIN
The debt market is still under pressure. The performance of the BTP also exceeds that of the German secondary, bringing the spread back from the recent highs. Compared to 154 cents on Wednesday, the Italian 149-year rate gap on the Bund is therefore back to XNUMX basis points, on the morning's values.
The yield on the German bond rises to 0,42%, Btp to 1,91%, distanced from the ten-year Portuguese reference April 2027 which closed at a yield of 1,779%, down 4 thousandths. The Spanish card is also in great evidence. The yield premium between the Spanish and German XNUMX-year yield thus slipped to its lowest level in the last three months, driven by new hedges on the Bonos.
THE TREASURY AUCTIONES 7 BILLION BTP 5 AND CCTEU
With the medium- and long-term auction next Thursday 28 December – value date 2 January – the Ministry of the Economy will make available to investors a total of between 5 and 7 billion euros of five-year, two-year BTPs and the CctEu April 2025 The offer focuses in particular on the ten-year tranche: instead of offering a new benchmark, as at least part of the market assumed, Via XX Settembre reopens the thirteenth tranche of August 2027 2,05% for 1/1,5 billion combined on the eleventh of June 2027, 2,20% between 500 million and one billion. For the ninth five-year tranche 1 August 2022 0,90% the Treasury proposal is equal to 2/2,5 billion, while on the fifth reopening of the CctEu 15 April 2025 the offer is between 1,5 and 2 billion.
IERUSALMI (STOCK EXCHANGE): ONLY LONDON HAS HAD MORE FASHION STUDENTS
2017 will close for Piazza Affari with 39 IPOs. "Space 4 is the 38th company on the list, tomorrow on Aim there will be another debut" declared the CEO of Borsa Italiana, Raffaele Jerusalmi, underlining that this year the Italian market is in second place in Europe for quotations, at shoulders of London, both in number and in size, thanks to the return to the Stock Exchange of Pirelli. 'Pirelli was a complicated operation and, among other things, it was by no means trivial for the company to choose Milan to list. I'm glad he did it”, revealed the manager who also added: '2017 was one of the best years ever for Borsa Italiana, but we expect 2018 to be even better. The pipeline of companies that want to be listed is extraordinary, both on the main market and on the AIM”.
A BOND FOR PIRELLI, THE US REFORM PUSHES BUZZI
In the meantime, the Board of Directors of Pirelli (+0,92%) yesterday authorized the issue, to be carried out by 31 January 2019, of one or more bonds to be placed with institutional investors, for a maximum amount of up to 1 billion euro. Equita raised the weight of the stock in its main portfolio (buy) by 100 basis points.
The market yesterday went in search of stocks that could benefit from the tax reform just passed in the US. Among these Buzzi Unicem +1,46%, included by Equita Sim in the top picks of 2018. Kepler Chevreux improved the target price to 27,5 euros. 40% of the total revenues of the Casale Monferrato group is exposed to the dollar area while almost a quarter of the operating profit is generated by the American subsidiaries.
The prospect of an acceleration of the business in the United States also benefited Cnh Industrial +0,89%, present in the Equita list. Among the “American” stocks, Fiat Chrysler also showed progress (+0,65%).
Usa effect also for Luxottica (+0,69%). Kepler-Cheuvreux reiterated the Buy recommendation and raised the target price to 55 euros from 53 euros.
MEDIASET WINS THE WORLD CUP
Mediaset (+0,73%) was exclusively awarded the broadcasting rights of the next football world championships, which will be held in Russia during 2018. The group from Cologno Monzese has announced that all 64 matches of the World Cup organized by FIFA will be visible for the first time on Italian commercial TV and on the subsidiary Mediaset Espana.
Telecom also performed well (+0,75%). Banca Imi confirmed the buy recommendation and the target price of 1,11 euros on the stock, explaining that the sanction from the Communications Authority will not have a significant impact on the accounts.
ANGELONI: NPL, MORE NEEDS TO BE DONE
Purchases on banks and in particular on Banco Bpm (+1,90%). The joint venture with Cattolica +0,16% in the distribution of policies will be operational from March.
During Wednesday's hearing before the Commission of Inquiry into Banks, the member of the Supervisory Authority of the ECB, Ignazio Angeloni, affirmed that the banks must continue with the cleaning of the bad debts from their balance sheets. Much has already been done, the gross incidence of NPLs has dropped from 16% at the end of 2016 to 12%. But the European average is 6,5%.
Intesa (+1,51%) signed an agreement with the unions regarding the voluntary early exits of 9.000 employees, savings are generated, once fully operational, of 675 million euros a year. The reorganization of asset management and insurance activities is looming: Eurizon and Fideuram should be merged.
Ubi Banca turned negative (-0,3%), on the contrary Unicredit (+0,6%). On the other hand, a sharp correction for Creval (-4,39%) after the gains following the approval of the share capital increase by the shareholders' meeting.
CARIGE, MALACALZA'S SHARE WILL RISE
Let's sum up the operation on Carige's capital: subscriptions reached the figure of 353,7 million (out of 500) equal to 71%. After the auction for the unopted shares, approximately 29% of the total new shares remained available. Malacalza therefore has the opportunity to increase the stake to 28%. And Volpi can go up to 9%
Unipol +0,6%. Mediobanca would have been charged with looking for a partner for Unipol Banca.
PIAGGIO GETTING UPWARDS
Strong growth for Piaggio (+3,58%). The Indian government's investment projects for rural areas play in the group's favor. Trevi (+12%) rebounded from yesterday's all-time low to 0,2449 euros. Axelero did well in Aim (+2,3%) after the agreement with Artigiancassa, the bank of reference for SMEs.
