Donald Trump has broken another taboo. The President, in contravention of an unwritten rule, wanted to have his say on the Fed's policy. “I'm not enthusiastic – he said in a TV interview – about the rate hikes. Every time you grow they want to raise rates again. I am not happy. But at the same time, I let them do what they think is best because I think I've chosen a good man." In short, a first warning to Jerome Powell, guilty of skeptical comments on the tariff policy which is raising many concerns even among Republicans. In South Carolina, for example, where BMW, which is the most important local employer, has announced the closure of the plant due to the taxes imposed on the SUVs produced there for the Chinese market.
This is the climate on the eve of a crucial week for the comparison on car duties. Margrete Vestagen, EU Commissioner for Competition, makes it known that she has finalized the list of reprisals in the event of tariffs imposed on vehicles arriving from Europe. Instead, Trump points his finger at the fine imposed by Vestagen itself on Google.
The invitation to Putin to visit the USA next autumn also contributes to conditioning the climate, in open defiance of the FBI and the Russiagate investigations.
Geopolitical tensions mark the mood of the lists on the eve of the weekend.
YUAN LANDSLIDE CONTINUES, TOKYO WEAK
The yuan marks a new low against the dollar at 6,8128, despite the support of state banks with the apparent aim of curbing the decline.
Asian stock markets are down. Chinese lists lose 0,6%, Hong Kong -0,8% to a ten-month low. The decline in the Chinese currency weighs on the competitiveness of the economies of the region, as are the tensions on the accounts of the corporations: the conglomerate HNA, on its return to the list after a long suspension, left 10% on the ground. Tokyo's Nikkei index loses 0,6%.
OIL STABLE: +9% SINCE JANUARY
Gold is down for the sixth consecutive day at 1.219 dollars an ounce, down 6,5% since the beginning of the year. Since the beginning of the year, silver has dropped by 9,7%, aluminum by 12% and copper by 16%.
Oil is standing around 72,6 dollars this morning. Despite the declines of the last week, Brent crude oil, up 0,2% this morning to 72,7 dollars a barrel, marks a positive change of almost 9%. The positive variation of the WTI is even wider: +14% since the beginning of the year.
Oil stocks moved little. In Piazza Affari Eni -0,35% despite the promotion of Credit Suisse from neutral to outperform, with the target price going from 18,2 to 20,2 euros. Analysts cite a potential upward revision to cash flow targets
The euro traded this morning at 1,1650: during the week the single currency lost 0,3% against the dollar.
The flattening of the curve continues: the spread between 2 and 10-year bonds has slipped to 23,40 points, the lowest since July 2007.
WALL STREETMA HOLDS DOWN, BUT THE REBEL IS PLAYING IBM (+4%)
Last night Wall Street closed down, for the Dow Jones, down by 0,53%, it was the first negative session after five positive ones. S&P 500 -0,40%, Nasdaq -0,37%.
Bad banks and financial companies, all down. The positive note comes from IBM, +4% after the Stock Exchange after the accounts which show strong growth in cloud activity (+89% in the quarter).
Comcast up 2,6% later the renunciation of the purchase of 21st Century Fox.
EUROPEAN MARKETS WEAK AHEAD OF THE CAR DUEL
European markets slowing down on summer volumes. Wall Street's support faded yesterday despite the dollar's robust tone. The shadow of the war on tariffs continues to weigh. The Wall Street Journal reports that, during a cabinet meeting. the US president Trump would have spoken of a "tremendous punishment" against the European Union, speaking of tariffs on imported cars. And yesterday, regarding the fine imposed on Google by Brussels, the president said: "They continue to treat us badly, but it will end".
TENSION RISES IN ITALY. ONE MORE REFERRAL FOR CDP
To raise the temperature is the growth of tensions in Italian politics. The pretext is the conflict around appointments to the CDP. Minister Giovanni Tria insists on Scannapieco's name against the pressure from Cinque Stelle and Lega. Worth noting is the prediction of the Wall Street Journal: . “Under previous technocratic administrations. The newspaper writes – Italy has undergone a regulatory change when instead it also needed a change of heart. The strange Italian coalition will fail if the right wins on immigration but the left on the economy”.
The indomitable Claudio Borghi, economic manager of the League and president of the Montecitorio budget commission, poured more fuel on the fire: the appointment of Jens Weidmann to lead the ECB in November 2019 after Mario Draghi, he says, "would not be a good choice because his rigorous ideas could bring Europe to ruin”.
Milan (-0,4%) closed in negative territory at 21.885 points after modest exchanges: 1,76 billion the total value.
The other price lists were also weak: Frankfurt -0,62%, Paris -0,56%, Madrid -0,33%. Outside the eurozone, London rose slightly, +0,12%, with the pound still weak and Brexit unknown. The first official response of the EU to London's proposals on the United Kingdom's exit from the Union is scheduled for today. Zurich also decreased -0,11%.
Iliad flies to Paris (+7,7%) after announcing the over one million subscribers in Italy to its low cost offer.
BTP AT 2,51%. POSITIVE FORECASTS FOR THE SUMMER
The session was slow for Italian bonds: the 2,51-year yield closed at 2,47% (from a low of 224%); the spread with the Bund rises to 5 points (+2 points) due to the recovery of German bonds after the morning auctions. The yield of the 0,53-year BTP dropped this morning to XNUMX%, the lowest since mid-June.
Spain has placed approximately 4,5 billion bonds with maturities in 2023, 2026, 2028 and 2033, with slightly decreasing yields. France has in turn allocated around 7,5 billion OATs to 2021 and 2024, in addition to 1,6 billion indexed.
According to operators, the peripheral market, the Italian one in particular, will benefit in the coming weeks from the supply profile and maturities on the primary market, beyond the expected cancellation of the BTP auctions in mid-August. On 30 July, Spain reimbursed 20-year Bonos for 9,4 billion (plus 23,6 billion coupons), followed by Italy on 5,3 August with XNUMX-year BTPs for XNUMX (plus XNUMX billion coupons).
Yesterday the new margins on Italian government bonds entered into force by the London clearing house Lch; the maturities from 3 months to 10 years and the Cct are involved. For titles from 2 to 4,75 years the increase exceeds one percentage point, for Cct it exceeds three percentage points.
THE MARELLI EFFECT PUSHES FIAT CHRYSLER
Fiat Chrysler was the best stock on the list with a jump of 1,35%. Mediobanca Securities (“outperform”) considers the news of the start of the process positive spin-off and listing of Magneti Marelli. It is not yet clear the amount of debt that FCA should assign to Magneti Marelli: 1,5 or 2 billion euros? Equita experts believe at least 1,5 billion euros. Banca Akros notes that "Magneti Marelli could be valued with an enterprise value/ebitda multiple of around 5,5 times, much higher than our current valuation of around 4,5 times".
Pirelli rises by 1,22%, while Cnh loses 0,58%.
WEAK BANKS AND MANAGED. ONLY BANCA IFIS ON SECURITIES
The banks were weak, with the exception of Mediobanca (+0,37%). Bper Banca loses 1,4%. Unicredit -1,5%.
Management is also in red. On Banca Mediolanum (-0,5% to 5,91 euro) Equita lowered the target price from 7,6 to 7 euro, a price that still remains above the current stock exchange levels, while it confirmed the hold recommendation. Azimuth -0,15%. Banca Akros reduced the target price of the stock from 18 to 15 euros, confirming the neutral recommendation. Analysts expect second quarter accounts to be weak.
Banca Ifis still on the rise on the wave of the purchase from Unicredit and three other players of four portfolios of non-performing loans for a total nominal value of around 600 million euro, spread across over 27.500 positions. Banca Imi (add, Tp 39,6 euro) appreciates the operation.
It closed in line with the Generali index (-0,4%) after the announcement of an agreement with Life Company (Lccg) for the sale of its stake in Generali Worldwide Insurance Company and Generali Link. “The rationalization of the perimeter continues”, commented Equita (“hold”).
BUZZI STOPPED BY THE US BUILDING INDUSTRY. OK THE PRYSMIAN RISE
The worst stock was Buzzi Unicem (-3,51%, under 20 euro), affected by the slowdown in construction activity in the USA: Kepler Cheuvreux lowered the target price on the stock from 25,5 to 24,5 euro, confirming the buy recommendation.
Prysmian -0,5% on the closing day of the 500 million capital increase. The operation closed with acceptances equal to 97,81% of the shares offered. The unexercised option rights will be offered in the sessions from 24 to 30 July, unless closed early.
MONDO TV GOES INTO ORBIT
New upward leap for Mondo TV (+10,8% to 4,67 euros). The share has been rallying since 17 July (3,435 euros per share), when the company announced that it estimated a net profit of around 6 million (+7%) in the first 30 months of the year.
Well done Bomi Italia (+2,3%), leader in the biomedical logistics sector, which proceeded with the acquisition of Farma Logistica.
Go Internet (+0,7%) in June won 648 new customers, of which 410 in the 4G Lte segment, 170 in the 4G Wimax segment and 68 in the Fiber to home segment active in Perugia and Bologna.
