“Fiscal Measures for Growth”. This is the title of an article that appeared on the Chinese Finance Ministry website late Tuesday evening. The text does not contain specific provisions, but it was evaluated by the markets as the confirmation that Beijing, after the G20, is willing to do its part in supporting the economic situation. “The tone of the speech – reads a note from Anz – is one of renewed support for the line of reforms”.
The recovery of the Asian price lists was immediate. Shanghai and Shenzhen advance, Hong Kong does even better (+2,7%). Korea and Sydney are also doing well. The strongest reaction was recorded in Tokyo: +7,7%, the largest rise since November 10, 2008. The Nikkei thus recovered Tuesday's losses -2,4%.
No less significant is the recovery of emerging currencies, not only in Asia. The rand of South Africa, the ruble of Russia and the lira of Turkey have returned to appreciate against the dollar after reaching lows in recent days, in some cases, never seen in history.
Strong recovery in copper prices (+5%). Oil's gains are much more modest (+0,3%).
WALL STREET FLY TOO. WORLD BANK WARNING ON RATES
The awakening of the Eastern markets was preceded by the leap of Wall Street, reopening after the long weekend. The US stock exchanges recovered the losses suffered on Friday, when many had reduced their positions fearing negative news from China that did not exist. The Dow Jones index rises by 2,4%, S&P 500 +2,51%. NASDAQ +2,71%.
Apple (+2,8%) in great evidence on the eve of the presentation scheduled for tonight in San Francisco of the latest version of the iPhone 6. Yahoo (-4%) fell sharply after the US authorities denied the exemption fiscal spin-off of the Alibaba shares (value 23 billion) owned by the group, thus imposing a stop to the birth of Aabaco, the subsidiary that was supposed to manage this and other minor investments. It is a change of course by the tax authorities that could affect many projects in the pipeline on Wall Street.
The chief economist of the World Bank, Kaushik Basu, has launched an appeal to the Fed against the rate hike that could create "panic and turbulence" in emerging markets.
MILAN +1,5%. 7,75 BILLION BTP ARRIVES
European stock markets also recovered some of the ground lost in the past week. In Milan, the Ftse Mib index rises by 1,5%. Paris gains 1,2%, Frankfurt 1,7% and Madrid 1%. Positive market sentiment was boosted by July's German surplus, driven by very robust exports, and Q0.4 Eurozone GDP, revised to +0.3% from +2011% (YoY is the best figure since QXNUMX XNUMX) .
On the bond market, the spread between the BTP and the Bund returned below 120 points, settling at 116 basis points, with the 1,84-year yield at XNUMX%.
At the September 11 auction, 3-year BTPs (amounts between 1,75 and 2,25 billion), 7-year BTPs (3,25-4 billion) and 30-year BTPs (1-1,5 billion) will be offered .
THE BAD BANK PUSHES MPS AND BANCO POPOLARE
Leading the race in Piazza Affari was the banking sector, awaiting news from Brussels on the green light for the Italian bad bank. In reality, the EU competition commissioner Margrethe Vestager specified that "we have not yet reached the conclusion" adding however that "perhaps there will be a technical meeting tomorrow". Meanwhile, the Btp/Bund spread drops to 115 points.
Monte Paschi achieved a rise of 4,3%: the institution put a portfolio of 1,8 billion in non-performing loans up for sale. The bank's industrial plan envisages placing NPLs for 5,5 billion by 2018. Bad bank effect also on Banco Popolare +2,8%.
Intesa (+2,2%), Unicredit (+1%) and Mediobanca (+3,2%) also rose. The Popolare di Milano also did very well (+2,8%) which placed a covered bond of one billion, with a duration of 7 years, with institutional investors. Barclays has raised its target to overweight (target to 1m2 euro). The British institute also rewarded Intesa (+2,6%), overweight (target at 3,7 from 3,1 euros).
MANAGED TO THE RESCUE: AZIMUT BEST BLUE CHIP
The best blue chip in Piazza Affari is Azimut, up 4,6% on the day of the publication of data on August collection, closed at +427 million euros. In July, the net inflow was 354 million euros. Since the beginning of the year, inflows amounted to 4,7 billion euro, up 13% compared to the first eight months of 2014.
In August, the Australian subsidiary LFPS entered the scope of consolidation, with assets of approximately 110 million euro. Conversely, an extraordinary outflow of 80 million euros should be recorded in Brazil: a group of wealthy Brazilian clients decided to place their assets in a fund they set up.
In Italy, net inflows amounted to 400 million euro, 250 million in managed savings products and the rest in administration. At the end of August, Azimut had total assets under custody of €34,6 billion, of which €29,9 billion under management. At the end of July the total was 35,1 billion.
M&A AIR IS GOOD FOR UTILITIES
Another driving sector, the utilities in the wake of Matteo Renzi's statements regarding incentives to encourage aggregations between companies in the sector. A2A shines in particular (+3,6%) which has entered into negotiations to go up to 100% of the subsidiary Edipower. Also in evidence are Iren (+2,4%), Acea (+2%) and Hera (+1,4%).
Enel gains 1,8%, Enel Green Power +1,4%, Snam +1,5%. Among oil companies, Eni +0,8%: Ubs reduced its target price from 19 to 16,5 euros, confirming the buy recommendation. Saipem +1,7%. Nomura has raised the rating on the share to neutral and the target price to 7,3 euros from 5,4 euros. Tenaris was also positive +0,96% which received an upgrade to outperform from market perform by Bernstein.
THE RETURN-PROOF PIRELLI TENDER OFFER IS LEADING
The takeover bid for Pirelli (+13%, at 0,4 euros) launched by Marco Polo Industrial Holding, the joint venture between ChemChina (15,01%) and Camfin (65%) starts this morning and will end on 35 October. The offer concerns 76,5% of the ordinary share capital plus 12 million savings shares and aims to cancel the listing of the stock on the Stock Exchange, with the consequent merger between Pirelli and Marco Polo. The price is 15 euros, for a maximum outlay of 5,6 billion euros.
The offer document clarifies that the price cannot be higher than the fixed level even if the right of withdrawal is exercised. This is up to the shareholders who will join the takeover bid, in the event of changes to the articles of association or merger in a non-listed company. In the event of withdrawal, the value of the shares will be established on the basis of the arithmetic mean of the closing prices in the six months preceding the publication of the notice convening the shareholders' meeting called to express its opinion on the merger between Pirelli and Marco Polo.
If the consideration for the withdrawal established on the basis of the closing prices in the six months preceding the operation is higher than 15 euros – warns the document – Marco Polo Industrial Holding is expected to “request the listing of its shares at the same time as the merger with Pirelli”. The clauses contained in the document should frustrate the expectations of the investors who had bet, through the withdrawal, on a higher offer price
Among the securities subject to the takeover bid, Ansaldo (-0,05% to 9,51 euro) closed slightly down, returning close to the price of the offer which will be launched in the coming weeks by Hitachi, after the European Commission authorized the US General Electric to acquire the energy sector of the French group Alstom, on the condition that some of the latter's key assets in the field of heavy-duty gas turbines are sold to Ansaldo, to avoid that the transaction eliminates one of Ge's main global competitors in this sector.
US AIRPORTS GIVE AUTOGRILL TAKE OFF
Large gains, in the blue chip basket, also for Autogrill (+4,7%): the stock reacted to the release of the July data on passenger traffic at US airports. According to data from A4A (Airlines for America), in July the number of passengers at US airports grew by 6% to 56,6 million euros, bringing the year-to-date growth of passengers to +4,4%.
Contrasted instead Telecom Italia, -0,7%. Mediaset +1,7%. In the Luxury segment, Moncler +2%.
PININFARINA TO MAHINDRA: IT'S ALMOST DONE
Up 4% Fiat Chrysler. Pininfarina flies with a leap forward of 20,61% to 4,95 euros, deserving of a suspension for excess of upside. The design group for the automotive sector (77% controlled by the family of the same name) confirmed the negotiations for the sale to the Indian group Mahindra & Mahindra which would have proposed to buy the 87 million euro debt with a 50% cut. Borsa Italiana has announced that the placing of orders without price limit on the company's shares will not be allowed today.
