DRAGONS GIVE THE CHARGE: ALL THE BAGS ON THE RISE. GOOGLE AND NETFLIX LIGHT UP WALL STREET
“Greece must stay in Europe”. Peremptory words from Mario Draghi who re-sheathed the spirit of whatever it takes of three years ago, in defense of the euro. And the banker's attitude, accompanied by the reopening of Ela loans to Greek banks, has convinced the markets that the most acute phase of the crisis is now behind us.
Super Mario's lunge was one of the ingredients of the general rise in stock exchanges. Tokyo rises +0,2% for the fifth consecutive session. In the week the gain is 4,4%. Lively Hong Kong +0,8%, preceded by Shanghai +1,9% and Shenzhen +2,9%. The US Stock Exchanges are also positive.
The Dow Jones index rose 0,38%, the S&P 500 about 0,7% and the Nasdaq 1,26%. The excellent state of health of the tech world emerges from the US quarterly reports.
FLY GOOGLE. NETFLIX IS WORTH MORE THAN GM
After the results, Google went into orbit: +11,24% to 644,9 dollars, the latest price after the Stock Exchange. Ruth Porat, the new CEO, began beating analysts' estimates. And the results, she stressed, would have been a billion higher without the strong dollar.
Historic overtaking: Netflix's capitalization +17,7% after the accounts exceeded that of GM yesterday. On the other hand, a negative quarter for Goldman Sachs -1%, due to large provisions against legal risks. Today it's the turn of General Electric.
Crude closes the week of the Iranian nuclear deal lower: Brent trades at 57,13 dollars, Wti at 51,12. The euro fell to its lowest level in the last six weeks against the dollar: exchange rate at 1,089. It is also the effect of the carry trade of investors who return to appearing on European lists by borrowing in the single currency.
MILAN CANCEL THE GREXIT EFFECT. STRONG PURCHASES ON BTPs
There are still many obstacles along the way to the Greek agreement, but the stock exchanges have now closed the issue. Seventh consecutive rise for the EuroStoxx50 index. In Milan, the Ftse Mib index rose by 1,67% to 23.783 points.
With today's extension, the Piazza Affari index has returned to the levels prior to the announcement of the referendum in Greece. Frankfurt's Dax gained 1,53% to 11.716,16 points, the Cac closed up 1,47%, and the Ibex 1,61%. London's FTSE 100 also closed +0,63%.
On the bond front, the spread between the BTP and the Bund fell below 121 basis points with the Italian 2-year bond now yielding 151,69%, after a weakening of the September future on the German bund, which fell to XNUMX, a sign that the resolution of the The Greek situation pushes operators to reposition themselves on securities from the periphery which guarantee higher yields.
ECB. NEW MEASURES FOR GROWTH, IF NECESSARY
Draghi's intervention was not limited to Greece, Giuseppe Sersale of Anthilia commented: “In the Statement first of all he took care to reiterate that QE is proceeding and will continue until September 2016, and in any case until the inflation target is considered achieved. The latest developments in the financial markets have not changed the Governing Council's view that the recovery is gaining momentum and that the measures are working. But if for any reason an unwelcome tightening of financial conditions or a change in inflation trends is observed, they will act without delay to correct the situation. By inserting this note for the first time in an official Statement, the ECB President intended to reinforce it. Draghi also underlined the improvement in credit dynamics”.
FCA AND FINMECCANICA, TWIN RALLY
Among the titles in greater evidence, two purebred horses of the industry stand out. Fiat Chrysler Automobiles advances by 2,7%. In June, the house registered 472.825 cars in Europe, +12% year on year. The market rose 14,8% to 1,41 million. For Crédit Suisse (overweight, target price 18,3 euros) the stock is the first choice of the European sector. In Europe, the Stoxx index of car groups marks a rise of 1,3%.
In the Agnelli stable he also closed higher Exor +2,63%. PartnerRe and Axis announce that they have improved the terms of their merger project, which Exor is opposing with a competing offer on PartnerRe. In detail, the two companies raised the one-off cash dividend to $17,5 per share expected prior to the completion of the combination. Privileged shareholders will then be offered the same terms as the Exor offer, which also reveal fiscal problems, removing the obstacle of a possible downgrading from Am Best.
Finmeccanica +3% is on the highest since October 2008 at 12,88 euros. In a note, the company communicated that it has repurchased bonds for a value of approximately 450 million euros and expresses "great satisfaction" because the success of the operation will allow "a reduction in the group's gross debt of approximately 450 million euros and, consequently, a reduction in financial charges in the years to come”. The stock thus extends its performance since the beginning of the year to +66%, the third best result so far after those of B. Pop. Milan +82% and Yoox +69%.
SOUL RECORD, MANAGEMENT RAISES ITS HEAD
The recovery of bank stocks continues. Banca Popolare di Milano + 2,8% Unicredit + 2% Understanding + 2,1% Mediobanca + 2%. Bank Ifis +5%. The asset management sector also rebounds.
In the head figure Anima +7%, on new historical highs. For Goldman Sachs it is the company best positioned due to the prevalence of funds domiciled in Italy. The recommendation is Buy with a target price of 9,40 euros. The US bank intervened in the Asset Management sector, following the call by Consob to put the interest of subscribers before that of intermediaries in the distribution of foreign and foreign-invested funds to retail customers. Mediolanum + 2% Azimuth + 0,6% General Bank + 2,4%.
SUPERSTAR EUROPEAN TLCs. TELECOM AT SEPTEMBER 2009 PRICES
Telecom Italy it accelerated in the final closing up by 3,7%, on price levels it had not seen since September 2009 at 1,25 euro. Since the beginning of the year, the entire European telephone sector has been buzzing with expectations of cross-border consolidation. The Eurostoxx Tlc index (today +2%) has risen by approximately 24% since January 19 against the +XNUMX% recorded by the Eurostoxx Global. Down Tiscali -3,85% after the leap following the operation with the Russian Aria. Mediaset + 3,2%.
ADVANCE LUXURY. THUD OF LANDI RENZO
in the rest of the list. Luxury advances, on the wave of the dollar: Ferragamo + 3,30% Tod’s + 2,23% Moncler + 2,36% Yoox + 1,14%. Luxottica +1,64%. Well too Rest +4,4% and Atlantia + 3,5%. Prysmian closes at +2,93% after a new contract for the Normandie 1 project. Heavy slide, instead of Landi renzo -5,01% which left a profit warning: the drop in crude oil puts methane and liquid gas engines in difficulty.
