North Korea's response to the new sanctions approved by the UN came overnight. A Pyongyang missile fell into the sea 2 kilometers east of the Japanese island of Hokkaido after a flight of 3 kilometres, a distance shorter than that which separates Kim's arsenal from the US bases on the island of Guam. The umpteenth provocation hasn't shaken the Tokyo Stock Exchange too much, which is starting to close with a modest +0,1% gain. In Seoul, the Kospi index fell by 0,5% as did Sydney, but the Asia Pacific index closed the week with a gain of 0,4%. Hong Kong closes at +0,7%.
INFLATION RISES, TOWARDS THE NIGHT IN THE USA AND LONDON
More than with the Korean dictator's threats, the Stock Exchanges are dealing with the signs of a recovery in inflation. The CPI consumer price index rose by 0,4% in the US, the largest increase in seven months. Meanwhile, the Bank of England, while leaving rates unchanged, signaled the possibility of a forthcoming hike, the first for ten years. At this point, a new increase in the cost of US money becomes probable within the year preceded, on the occasion of the meeting of 24-25 September, by the start of the reduction of the federal budget. Even in the Eurozone there is an air of mini tightening, albeit in the context of the expansive policy defended by Mario Draghi. The new sentiment slowed, albeit slightly, the momentum of Wall Street, fresh from the fresh triple record. The S&P index, after setting a new record, recorded a slight correction (-0,115). Also down the Nasdaq -0,48%, thanks to the cold reception to new Apple products -0,86%.
TESLA LAUNCHES THE ELECTRIC TRUCK
But the rally continued on the Dow Jones: +0,2% and new record under the impetus of Pfizer and above all of Boeing +1,36%, after the promotion of Deutsche Bank. Tesla also flies +3% after the latest novelty from Elon Musk's workshop: the electric truck that will soon be racing on the roads of California.
The increase in interest rates, in this context, is not too scary for now. The increase is accompanied by the increase in oil prices (55,14 dollars for Brent +2,5% in the week, Wti above 50 dollars), partly linked to the consequences of the hurricanes that hit US plants. But the increases, according to the International Energy Agency (IEA), are linked above all to the growth in consumption. Indication of the global recovery.? It is the oil stocks that ensure the safety net of the Stock Exchanges. Also in Piazza Affari.
On Thursday evening, Eni's board of directors +0,5% approved the distribution of an interim dividend for 2018 in the amount of 0,4 euro per stock based on the group's financial position (net profit of €2,45 billion as at 30 June) . The coupon will be detached on Monday and paid on 20 September.
The Stoxx European Oil sector index rose by 1%, that of Mining dropped 1,3%.??Saipem?+0,5%,?Tenaris +2,4%.?
ITALIAN GDP SPEED UP. MILAN +0,2%
A mixed day for the main European markets, supported however by the good performance of oil prices.
In Milan, the Ftse-Mib gained 0,2% to 22.281 points.
Paris closed up 0,1%, Frankfurt down 0,1%.
It suffered in London, down by 1,1% after the board meeting of the British Central Bank (7 to 2) which, with a majority, confirmed the rates and the amount of the asset purchase program at 0,25%. However, most members of the Bank of England's monetary policy committee believe it is probable that the first tightening on the cost of money in more than a decade could be necessary in the coming months, if the economy continues to grow and inflationary pressures to increase. The pound finished up 1,3% against both the dollar (1,338) and the euro (1,126).?
On the macro front, Istat confirmed that inflation in Italy has recovered, reaching 0,3% on a monthly basis and 1,2% on an annual basis in August. Confindustria has also revised the GDP upwards for this year and next, speaking of a "prudent" estimate that does not include the effects of the 2018 Budget law. The Industrial Studies Center sees the 2017 GDP at 1,5%, in two-tenths of a point increase on the June estimate and almost double from December's 0,8%. For 2018, the GDP is indicated at +1,3% from +1,1%.
WEIDMANN: "DRAGHI, TAKE YOUR FOOT OFF THE ACCELERATOR"
The ECB should "lift off the accelerator", Bundesbank president Jens Weidmann said yesterday, specifying that an accommodating monetary policy remains necessary in the light of still weak inflation.
For the German banker, critical of the first hour of the asset purchase programme, the accommodative monetary policy is made necessary by the enormous balance sheet of the ECB - after the purchase of over 2.000 billion bonds, mostly government bonds - and not by the monthly pace of purchases.
Closure with a slight decrease for the Italian bond market which, in line with the entire sector of government bonds in the Eurozone, nonetheless shows a certain resilience in the face of the multiplication of signs of an imminent tightening of monetary policy.
Even the ECB, in addition to the Boe and the Fed, could initiate a mini-squeeze by reducing the pace of monthly Qe purchases.
At the end of the morning, the Italian market reacted in a composed manner to a large sell order on the MTS platform (over 300 million euros on the 167-year BTP), which caused the spread to flare up to 165 basis points, the maximum for the day, and then drop back to XNUMX points.
The 2,064-year rate closed at 2,052% from 2,073% at the end of yesterday's session, with a peak at XNUMX%.
FCA LEADS THE CHARGE OF THE ITALIAN AUTOMOTIVE. MERKEL SCREAMS GERMAN HOUSES
Angela Merkel, on the occasion of the inauguration of the Frankfurt motor show, had very harsh words towards the behavior of the German car giants in the dieselgate scandal. Also yesterday, Chinese authorities ordered Volkswagen -0,44% to recall 4,9 million vehicles by December 2019 over concerns over potential defects in Takata's airbags. The European sector index also rose by 0,76%.
Meanwhile Sergio Marchionne, who deserted the kermesse across the Rhine, had reason to celebrate. Fiat Chrysler gained 2,4% by leapfrogging over 14 euros to 14,05 euros, a new record. In August, group registrations in Europe grew by 9,8% against +5,5% for the market. Furthermore, the IPO of Magneti Marelli, the components company which should be valued at around 5 billion euros, seems close.? Evercore Isi has raised the target price to 17 euros from 12.
It closed above Ferrari parity +0,1% at 91,45 euros on the day in which Goldman Sachs started hedging the stock with a neutral rating and a target price of 110 euros. Analysts have a bullish view on the fundamentals of the Prancing Horse and see EBITDA more than doubling by 2022. In the automotive sector, Brembo is also doing well +1,03%.
Strong purchases on Pininfarina -6,59% Balzo di Landi Renzo +12,2%, which amazed the market with the 2018-2022 strategic plan which provides for a return to profit as early as 2018.
Is the Stm +2,1% shining among industrial stocks? ?Goldman Sachs raised the chip company's target price from 14,1 to 16,3 euros, confirming the neutral recommendation.
Banks have grown in Piazza Affari:?Intesa rises by 0,8%, Bper Banca falls back?-2%,?Unicredit unchanged.?Banco Bpm +0,5% to 3,29 euros).
Banca Carige lost 1,81% after the presentation of the new industrial plan which accelerates the reduction of costs with the increase in personnel and branch cuts and has as its premise a capital strengthening of over 1 billion and sees a return to 'useful next year.
The insurance companies marked time:?Generali?-0,9%,?Unipol?-0,3%.
VIVENDI: WE HAVE THE MANAGEMENT, NOT THE CONTROL OF TELECOM
Weak Telecom Italia -0,9%, at the center of the tug of war between Vivendi and the government and part of the Italian establishment. ?Berenberg confirmed the hold recommendation on the stock and the target price at 0,84 euro in a report titled “The Italian fog gets thicker for?Vivendi?”. Equita underlines that, with regard to Tim, the risk is related to the decisions that the government can take "at the end of the review of the Golden Power, forcing the sale of strategic assets in such a way as to prevent a full evaluation". Vivendi will tell the Italian government that it exercises direction and coordination over Telecom Italia, but not control. This is what a French source familiar with the matter told Reuters. The French company will thus oppose the interpretation given yesterday by Consob i which challenged Vivendi's de facto control over the company. The same source also added that the new CEO for Telecom has not yet been found and that the Italian company does not have the sale of the network on its agenda.
Mediaset's rebound attempt fails -0,4%. What Vivendi will do with its stake remains unknown: whether it will still have to sell the part exceeding 10% of the capital by April or whether the transfer of the 19,19% voting rights to a trust will suffice.
The euro puts luxury brands in crisis: Moncler -1%,?Tod's -2%,?Ferragamo?-1%.
The alarm raised by Hermès with a drop of 2,8% on the Paris Stock Exchange together with the other two French giants was decisive: Kering lost 1,3%, Lvmh -0,3%.?
?Hermès?said that its revenues in the second half of 2017 and 2018 in the Luxury sector could be eroded?by the strength of the Euro. During the week, watchmaker Richemont also said that the strength of the currency would affect the spending propensity of tourists. Same alarm raised by Prada and Pernod Ricard.
PIRELLI, THE IPO IS WORTH 8,3 BILLION
The listing of Pirelli will take place at an indicative price that fluctuates between 6,3 and 8,3 euros, values corresponding to a capitalization of between 6,3 and 8,3 billion euros. The communication was made yesterday by the Bicocca group which also informed in a note that Consob has given the go-ahead for the publication of the information prospectus. The offer, according to the press release, will concern a maximum of 350 million ordinary shares, corresponding to 35% of the share capital, of which a minimum percentage (10%) will be destined for retail investors while the remaining 90% will be dedicated institutional placement «reserved for qualified investors in Italy and institutional investors abroad». The minimum lot for membership will be equal to 500 shares while the increased minimum lot will be equal to 5.000 shares.
TURIN AND GENOA MONEY WITH IREN
Turin and Genoa are ready to sell the Iren shares on the market released from the syndicate agreement which also includes the Emilian municipalities. This is what is reported in a note from the two administrations, they represent 5,5% of the ordinary share capital: at today's prices this means a collection of around 153 million euros.
in the rest of the list:
Maire Tecnimont closed down 1,32% on Barclays downgrade from 'overweight' to 'equal weight'.
On the other hand, I Grandi Viaggi did poorly, leaving 11,23% on the ground in the wake of the results for the nine months, which see falling revenues and a worsening net loss
