Mission accomplished: Janet Yellen, in the press conference at the end of the Fed's monetary committee, convinced the markets that the time to raise rates is still a long way off. The answer was not long in coming. Wall Street, uncertain until mid-session, entered positive territory: the Dow Jones closed at +0,58%, S&P500 +0,8% and Nasdaq +0,59%. Tokyo's reaction was even more lively this morning: the Nikkei index rose by 1,5%, driven by the stocks most linked to exports to the USA, from Toyota +2,8% to Sony +3,8%. Hong Kong's reaction was more cautious +0,23%.
It is highly probable that the Fed's message will push upwards even the European Stock Exchanges yesterday in a state of plaster awaiting the outcome of the meeting in Washington. The London Stock Exchange rose by 0,2%, Frankfurt +0,1%, Paris -0,1%. In Milan, the Ftse Mib closed up by 0,15%. On the government bond market, the 10-year BTP was traded up to a yield of 2,83%, with a spread of 146. The decision of the EU Commission to notify Italy of a letter of commission did not weigh too much in default for violation of the European directive on late payments to public administration companies.
USA, LOWEST GROWTH, LOW MONEY EVEN IN 2015
The Federal Reserve yesterday decided, as expected, to proceed with another tapering cut, lowering the monthly value of mortgage back security and treasury bond purchases by 10 billion to 35 billion. The central bank, however, lowered its estimates of economic growth for 2014 to 2,2% against the 2,9% expected in March. The slowdown, attributed to the frost that hit the USA in the first quarter, has passed, as evidenced by the better trend in employment, nor do we worry about inflation, which is still under control. But the USA, Yellen has repeatedly underlined, still requires a more accommodating monetary policy for quite some time than what the data picture suggests.
"Even if inflation, growth and employment improve significantly - Yellen underlined - it is our intention to keep the Fed Funds at a lower level than a normal framework". For at least three reasons: the existence of negative "pockets" in the economy, a legacy of the crisis; household confidence which remains low; last but not least, the low level of workers' income, which remains the weakest part of Corporate America, a factor holding back the recovery in consumption.
MEDIASET, THE PHONE OFFER HAS ARRIVED
While waiting to unveil its strategies in Telco/Telecom, the Spanish giant Telefonica moves its pawns on the Fininvest front. The Spanish company has presented a binding offer that can reach 355 million for the 22% of Digital+ pay-TV held by the Italian group.
Mediaset rose by 2,03%. It was not the only news of the day for the Berlusconi galaxy: Mondadori lost 7,2%, in line with the valuation of the securities (29,95 million shares, equal to approximately 12% of the capital) placed with investors on Tuesday evening: 15 million are new shares and the remainder are treasury shares held by the company. After the sale, Fininvest remains above 50%. From the placement, the publishing group collects approximately 30 million which go towards reducing debt (394 million at the end of the quarter). Meanwhile Telecom Italia rebounds and goes up by 1,1%.
MPS BRAKES, CARIGE PURE. THUD OF POP. ETRURIA
The capital increase of Banca Monte Paschi is proceeding with jerks, yesterday - 4,61%. The reverse right is trading at 19,99 euros, up 2%. Banca Carige also fell -3,31%, rights +1,13%. Mediobanca +0,3% has started arbitrage up to a maximum of 151 million between the Ligurian bank's ordinary shares and the corresponding option rights. Also noteworthy is the heavy thud of Banca Popolare dell'Etruria -12,5% after the backward step of Popolare di Vicenza. The institute chaired by Gianni Zonin, after acknowledging the refusal of the friendly offer for 222 million, has not decided to start a hostile takeover bid.
Among the other securities in the sector, Banco Popolare fell -0,2% despite Standard & Poor's having raised its rating. UniCredit +0,3%. The German press writes that Société Générale is interested in buying the online broker Dab Bank controlled by the Italian group through HVB. According to Manager Magazin, an agreement could be reached in August. In Frankfurt Dab Bank recorded an increase of 3,5%. Generals +0,7%. The general agreement with BTG Pactual for the sale of Banca della Svizzera Italiana (BSI) seems close. The Lion would be competing for the Polish Bre Ubezpieczenia.
GOLDMAN CANCELS YOOX, BUYBACK PUSHES AUTOGRILL
Among the positive notes of the day Autogrill +2,06% on the day of the launch of the buyback plan of up to 5% of the capital which can be realised, even in several tranches, by 27 November 2015. yet another collapse of Yoox -5,1% after the title was removed from the list of favorites of Goldman Sachs. The rest of the luxury sector was also down: Brunello Cucinelli -2,4%, Tod's -0,7%, Ferragamo -1%. Brilliant, in the Prysmian industrial sector +1,9%.
Cnh Industrial climbs 1%. Fiat -0,5%, Weak StM – 1,6%%. Finmeccanica loses 1,6% pending the first moves of the new managing director Mauro Moretti, who is about to start the reorganization plan of the holding: some subsidiaries could be incorporated and transformed into operating divisions. The subsidiary Ansaldo Sts instead rose by 1,5%
In 15 days Enel -0,23% will finalize the list of assets to be disposed of in order to achieve the debt reduction target which for 2014 envisages disposals for a value of 4,4 billion euros. The managing director Francesco Starace said so. Crude oil remains at its high (Brent at 114,26 dollars a barrel). Eni goes up by 0,8% and Saipem by 1%.
