The American locomotive runs beyond forecasts, but the Fed's policy has not changed for now. The markets take note. But they are preparing for the change of course. Therefore, the booming data in the second quarter (US GDP +4%) do not arouse enthusiasm.
In Asia, Hong Kong slows down -0,1%, one of the brightest lists in July. Shanghai and Seoul are also moderately down. Tokyo advances by 0,5%.
Wall Street, after an initial rebound, curbs enthusiasm: the Dow Jones -0,19% in negative ground, S&P +0.01% almost unchanged, Nasdaq +0,45%.
The most visible reaction concerns currencies. The rebound of the American economy crushes the euro, which drops to 1,337 against the dollar from 1,341 at the end: from the highs of March, the single European currency has lost almost 4% slipping to the lows since mid-November.
In Europe nervousness prevailed, the result of fear of unpleasant surprises from the Fed.
Paris closes at -1,22%, Frankfurt -0,62%, London -0,50%. The exception is Madrid +0,33%, driven by GDP growth in the second quarter.
The day after the launch of new sanctions against Russia, the Moscow Stock Exchange closed down by 0,4%, a drop that suddenly accrued in the last hour of trading, rising by 2 in the morning
Piazza Affari worsens in the final: the Ftse Mib index loses 0,9%.
On the bond markets, the hunt for yield has allowed the Treasury to easily place 7 billion euro of medium-long term bonds with new yield records since the introduction of the euro.
The 10-year BTP trades at 2,65%, close to historic lows
ARGENTINA, TALKS WITHOUT RESULT, THE DEFAULT TICKS
The ultimatum from Judge Griesa of New York to Argentina expired at 5 this morning (Italian time). Finance Minister Axel Kiciloff reiterated Buenos Aires' official position; we will not give the "vultures" better conditions than those guaranteed by the agreements of 2005 and 2010 (which provide for a discount on the face value of around 65%). The expectation of a last-minute agreement that had supported the Buenos Aires stock exchange and the quotations of public securities was thus disappointed. As a first reaction, the shares of the oil Ypf - 7,7% and Banco Macro -12,7% fell. The consequences on the country's budget, supported by the soy export surplus, will be limited.
But the new default, which should be declared by the hour, will have significant effects on Argentina's creditworthiness, already downgraded by S&P.
YELLEN: “WORK STILL UNDERESTIMATED”. BUT PLOSSER VOTES AGAINST
The vigorous rise in US GDP, even if favored by the increase in inventories, has put pressure on the accommodating policy of the Federal Reserve, which yesterday limited itself to cutting purchases on the market by another 10 billion but did not change the indications on taxi. The recovery, in fact, is significantly more robust than previously thought, also because it is accompanied by encouraging signs. such as consumer spending up 2.5% and investment up 5.9%. Even inflation which, while remaining moderate, is back in line with the Fed's target.
Against this backdrop, the ranks of those who deem it necessary to speed up the approach to the rate hike, now scheduled for spring 2015, are growing. Yellen resisted, emphasizing that employment remains weak, as demonstrated by the "undervaluation" of the work, dominated by low wages that show no signs of growing. But, for the first time, a member of the FOC has banned the president: it is Charles Plosser, number one of the Philadelphia bank.
Now attention is shifting to the labor market data which will be announced tomorrow: the expectation is for 218 hires.
EMGARGO WEIGHTS ON ILO COMPANIES. TODAY THE ENI ACCOUNTS
Difficult day yesterday in Europe for many equity sectors. Construction companies (Stoxx +1,6%), utilities (Stoxx -1%), insurance companies (Stoxx -1%), and automotive companies (Stoxx -1,2%) recorded sharp declines.
But the most marked declines concern oil companies, with the Stoxx index down by 2%, under the pressure of geopolitical crises (Libya in ruins, Middle East in flames) and the possible consequences of the embago against Moscow. In this sector index the French sinks Total, down 5% after the quarter's data was released: Adjusted net income fell 12% to $3,15 billion.
At Piazza Affari Eni it lost 1,7% after announcing its intention to reduce crude oil production in Nigeria following the sabotage of an oil pipeline in the African country. Six-legged dog bills will be announced today.
Saipem rebounds +0,67% after the fall on the eve.
FIAT HALF PROFITS, PROXY AGAINST MERGER PLAN
Fiat -2,1%. The group's latest Turin board of directors revealed a drop in net profit in the second quarter to 197 million euros (eps equal to 0,143 euros per share) from 435 million in the same period last year, against a declining EBIT by 10% to 961 million euros. The group's net industrial debt, on the other hand, improved, falling to 9,7 billion euros, 300 million less than at the end of March.
Available liquidity is equal to 21,771 billion. The group has confirmed the objectives for the whole of 2014 indicated on 6 May, namely: revenues equal to or above 93 billion euros. Ebit in the range of 3,6-4 billion euros. Net profit in the range of 0,6-0,8 billion euros.
In the meantime, anticipation for tomorrow's meeting is growing. On the eve, various advisors, specialized in advising institutional investors, took sides against the merger, emphasizing the greater weight that the loyalty clause guarantees to Exor. Iss, the most famous proxy, suggests voting no, as well as Frontis Governance, Suggests positive vote Glass Lewis, underlining the advantages of listing in New York.
Exor is down 2%.
It did little better Cnh -0,97, which was affected by the profit warning of the US competitor, specialized in the agricultural sector, Agco. Today it will give the quarterly results-
To note the excellent performance of Peugeot +6,04% on the wave of excellent data for the quarter.
Among industrial companies, Finmeccanica rises by 1%. Pirelli lose 1,3%, Prysmian -1,4%.
Quarterly also arriving for Enel, yesterday -1%.
Also in the red are Snam -0,71%, which published the half-yearly report, and Terna -1,48%.
UNICREDIT, LIVE AUCTION FOR 50% OF PIONEER
Piazza Affari limited the damage thanks to the banks, in particular the popular ones: Banca Popolare di Milano + 1,5% Banca Popolare dell'Emilia Romagna + 0,8%.
Monte Paschi is also lively +0,66%.
Unicredit -0,4%. Three offers are arriving, for 50% of Pioneer, but no decision has been taken by Unicredit. Pioneer is valued at around 2 billion euros. The company is interested in Santander, CVC and Advent.
The company in question would be valued at least 18 times earnings and at least 1,1% of assets under management.
Understanding is down 0,5%. Where's Banca -0,6%
Out of the main basket, ideas for Credito Valtellinese +0,27%, launched with outperforming by Exane Bnp Paribas, and Banca Profilo +8,76%, promoted on the quarterly.
Mediolanum in red - 1,43% on the day of publication of the half-yearly results.
This morning there will be the conference call on the accounts of Generali.
LUXURY AND MEDIASET SUFFER
Mediaset it paid again for the difficulties of advertising sales in Italy and lost 2,1% to 3,084 euros the day after the publication of the quarterly accounts, with several business houses which cut the target price on the stock.
D'Amico International Shipping recovered from the lows of the day and closed close to parity (-0,4% to 0,5175 euro) after the publication of the results for the first half of 2014. The stock recorded a low at 0,507 euro.
Generalized weakness for the luxury Yoox -2,51%, Luxottica -1,74% and Tod's -1,18%.
In the rest of the price list, Datalogic stands out +3,43%.
