Enjoy! As Donald Trump writes when he celebrates the new stock market highs on Twitter. The cry rang out several times yesterday on Wall Street, where all indexes made new highs, starting with the S&P 500, for the first time above 3.300 points. This morning the scene was repeated on Asian markets, all in positive territory despite China announcing the lowest growth since 1990: +6,1% for 2019, only +6% for the last quarter, the most affected by the conflict on trade with Washington, which led to a drop in productive investments of 3,1%. But this is now the past and stock exchanges, as we know, love to think about the future. And this requires China to make a robust effort to face a new reality: the country's birth rate has dropped to 1,05%, its lowest ever. For the markets, this reality requires Beijing to accelerate on the path of reforms and technology. And the challenge, judging by the price lists, has already been launched.
SHANGHAI AND TOKYO IN RALLY
This morning the Shanghai and Shenzhen stock exchanges advanced by 0,6%, on the trail of a rise that has lasted for seven weeks, confirming that the slowdown in GDP has already been largely digested by the market.
In Tokyo, the index rose by 0,5%, after hitting a 15-month high during the session.
New records, the fourth in a row, also for Australia (+0,46%) and for the Korean Kospi.
The yuan strengthened to 6,8651 against the dollar, the highest since July.
FLY MORGAN STANLEY, GOOGLE BEYOND THOUSAND BILLIONS
The agreement on tariffs, but also the sensational data arriving from the quarterly of Morgan Stanley (+6,6%) and the Philadelphia Fed index have caused new fireworks on Wall Street: Dow Jones +0,92%. S&P 500 +0,84%, Nasdaq +1,04%.
Alphabet joined the club of companies worth more than a trillion dollars yesterday. Microsoft (+1,8%) and chip manufacturers are also in evidence.
Commodity markets are calm. Gold up 0,2%, to 1.555 dollars an ounce, oil flat after closing yesterday up 1%: Brent 64,6 dollars, Wti 54 dollars.
On the bond front, yields on the rise for 1,81-year Treasuries, to 4%, +XNUMX basis points, after the Philadelphia index boom.
BUT THE EU ANTICIPATES: WE WILL RETURN TO THE WTO
Phil Hogan, the new European Commissioner for Competition, took on the role of party pooper yesterday on the day of applause for the tariff agreement between China and the US. Speaking in Washington, Hogan, an Irishman from Kilkenny, said that the agreement, from an economic point of view, is not worth much, but it is only a pre-election weapon in the hands of Donald Trump. And if the agreements punish trade with the EU, Brussels will not hesitate to appeal to the WTO. Also yesterday, the "Washington Post" announced that the president was ready to apply the 25% tariff increase on European cars in the event that France and Germany do not denounce the nuclear agreement with Iran. Two examples that confirm how the truce on trade between the two Greats is not the antechamber of peace, but rather an episode of the conflict. The news is that Europe is now in Trump's sights.
FUTURES ON THE RISE WAITING FOR INFLATION
Futures on European stock exchanges anticipate a start up by 0,2%.
Eyes today on the December inflation data in the Eurozone, expected to grow by +1,3% on an annual basis and +0,3% on a monthly basis.
Piazza Affari reacted yesterday to the decreases on the eve. The Milan Stock Exchange recorded a rise of 0,74%, to 23.940 points.
Frankfurt is flat (-0,02%); nearby Paris (+0,11%); Madrid +0,58%; London was down (-0,39%).
TRUMP THREATENS EUROPEAN CAR (IN RECOVERY)
The US threat to the automotive sector penalized the entire sector, which however recorded in December, for the fourth month in a row, a recovery in sales which made it possible to close the year with a plus sign: +1,2% thanks to the performance of the month (+21,4%). In 2019 as a whole, registrations exceeded 15,8 million units (+1,2%), reaching the highest volumes since 2008.
FCA TOGETHER WITH FOXCON ON BATTERIES
Declining FCA (-0,7%). Lingotto and the Taiwanese manufacturer Hon Hai Precision, which through its subsidiary Foxconn also builds iPhones for Apple, intend to establish an alliance for the creation of a joint venture active in components for battery-powered cars. The news emerged from a file filed on the Taiwan Stock Exchange. Ferraris -0,7%.
GERMANY CLOSES WITH COAL
Even more significant, also on a political level, is the rise in utilities, to their highest levels since 2010. The performance is linked in particular to the German plan for the total closure of mines and coal-fired plants by 2038. Finance Minister Scholz has promised 40 billion that will facilitate the transition to renewables. Rwe climbed 2,15%.
At Piazza Affari Enel (+1,7%) flies to the highest since 2007. Hera +1,1%. Snam +0,6%.
REQUESTS FOR 30 BTPs FLY TO 47 BILLION
The eurozone bond market stabilizes at Wednesday's levels, awaiting the release of the minutes of the latest ECB meeting and the intervention of ECB President Christine Lagarde. The yield on the 0,21-year German Bund moved little at -XNUMX%.
Some more tension for the ten-year BTP, at 1,42%, +5 basis points, with the spread widening to 163 basis points, the highest since December. The 2-year BTP rate moved into positive territory during the session.
The new Btp 30 (coupon 2,45%) was awarded to foreign investors at 68%. The security has collected requests for 47 billion euros, a record surpassed only by the Spanish ten-year bond (55 billion).
GOLDMAN PROMOTES BANKS: UBI AND BPM THROUGH THE STARS
Among the topics of Piazza Affari, the banking sector stands out, supported by a report by Goldman Sachs which promoted Unicredit (target price at 18 euros from 17,50) and gratified Ubi (+3,93%) with a Buy in view of a possible merger with Banco Bpm (+2,3%).
Mps (+0,83%) yesterday placed a 2 million euro tier 400 subordinated bond.
Day of respite for Atlantia (+1,17%). The board of Autostrade per l'Italia yesterday planned to deploy total resources by 2023 for 7,5 billion between investments and network maintenance costs. In particular, maintenance costs will rise to 1,6 billion euros with an increase of 40% compared to the previous four-year period.
The question of the concession to Autostrade per l'Italia will not be on the agenda of the Council of Ministers today.
JUVENTUS: NO DRAW FOR KEPLER AS LONG AS RONALDO IS THERE
Juventus stock is in negative ground (-1,3%): Kepler Chevreux has started hedging the stock (hold, target 1,30 euros). According to the broker's vision, the company will not break even until the contract of its star player, Cristiano Ronaldo, expires. The Portuguese striker signed a four-year deal in 2018 with an annual salary listed at €30m. But it wasn't just Ronaldo on the shopping list. Last year, according to calculations by insiders, the club would have paid out around 234 million euros to strengthen the team. "A strategy that is proving to be particularly demanding, both in terms of costs and investments", wrote Marco Baccaglio in the report, but which will lead to robust revenue growth.
"Core" revenues could potentially increase by 30% annually, once current sports performance, social media reach and team value are structurally reflected in the stock's fundamentals, the analysis clarified.
CAMPARI AND INWIT SPOTLIGHT
Campari +1,4%: Jefferies has upgraded the judgment from Hold to Buy, bringing the target price from 8,50 to 10 euros.
Salvatore Ferragamo -0,52%: Société Générale lowered its recommendation to sell.
Inwit +4,2%. The tower company that will be born with the contributions of the antennas of Tim and Vodafone has been given the go-ahead by the European Commission.
Living IN +8%. The board of directors approved the project to switch from AIM to MTA, Star segment.
Confinvest +9%: revenues of 27 million euros in 2019 from 14,7 million in 2018.
Askoll Eva also rallied (+17,05%). Since the approval of the Milleproroghe which took place on 21 December last, which extended the bonus for ecoscooters to 2020, i.e. the incentives for the purchase of mopeds or hybrid and electric scooters for those who scrap two wheels, the share has recorded an increase of about 38%.
