Dollar down, gold still up. The march towards the G20 at the weekend proceeds under the banner of caution. And the Stock Exchanges, barely moved, are watching. There is hope for a rapprochement between the US and China, but they are not harboring too many illusions. On the table remains the threat of additional tariffs on 300 billion dollars of Chinese products. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke on the phone with Chinese Deputy Premier Liu He on Monday. No details have emerged on the substance of the phone call.
TRUMP INSISTS ON CUTTING RATES. POWELL SPEAKS TODAY
Meanwhile, tensions are still rising with Tehran, hit yesterday by new US sanctions. Donald Trump, however, reserves his broadsides to the Fed: "Despite a Fed that does not know what it is doing - was his latest utterance - which raised rates too quickly and launched a large-scale monetary tightening of 50 billion dollars a month, we are about to record the best month of June in US history. A US rate cut is increasingly likely at this point.
The pressure had the effect of strengthening the yen and pushing the euro to 1,1407, a three-month high. The common currency rose by 1,5% in five days. Today, Fed Governor Jerome Powell will deliver his keynote address on economics and monetary policy at the Council on Foreign Relations in New York.
NISSAN-RENAULT STILL FAR AWAY
Weak Asian stock exchanges. The Chinese price lists suffer (-1,8%); the technology sector (-1,5%) holds back Hong Kong (-0,5%). Tokyo moved little (-0,2%). At the Nissan meeting, which is still in progress, there was no rapprochement of positions with Renault. "We want to continue the collaboration - said the CEO Saikawa - but on an equal footing".
CHINA PUNISHES FEDEX (-2,7%)
In terms of duties, FedEx apologizes to Beijing, which accuses the US shipper of having manipulated Huawei devices shipped to America. “It was a misunderstanding,” says FedEx. But sanctions seem inevitable; the stock on Wall Street lost 2,7%.
Gold advances like a steamroller. $1.438,6 an ounce this morning, the highest since May 2013.
Contrasted the trend of oil. Brent was down slightly to 64,86 dollars (- 34 cents). The WTI rises to 57,90 dollars (+47 cents)
WEAK WALL STREET. SOROS: MORE TAXES FOR THE RICH
Waiting session also for Wall Street: S&P 500 -0,17% to 2945,35, still close to the historical record. Dow Jones -0,03%, Nasdaq -0,32%.
A group of American billionaires, including George Soros and Facebook cofounder Chris Hughes, have released an open letter ahead of the 2020 election calling for a tax on the super rich
COUPON EFFECT ON BUSINESS PLACE (-0,5%)
The drop in the dollar puts pressure on European stock markets after a three-week rise, the Stock Exchanges are expected to get off to a weak start. After a day in pale red also for Piazza Affari, enlivened by the assignment of the Winter Olympics to Milan and Cortina. Meanwhile, from the minute meeting of last June 5 it emerged that the EU Commission could give Italy time until January, instead of October, to proceed with the changes to the budgetary policy.
Lying index yesterday in Piazza Affari. The price list closes the session with a drop of 0,49% at 21.284,10 points, but the detachment of the coupon of six blue chips influenced the data. Net of dividends, the loss is limited to 0,2%.
The dividends were paid by Exor (-0,07%), Poste Italiane (-2,94%, but +1,76% net of the coupon), Hera (-3,53%), Prysmian (-3,8% ), Snam (-3,38%) and Terna (-2,18%). For Tim, the coupon effect was limited to savings (-2,18%).
The debut among the blue chips of Nexi (-0,77%) completes the picture of the main basket.
THE IFO INDEX AND DAIMLER HOLD FRANKFURT BACK
The other European stock exchanges also weakened, returning from a three-week rise. Paris retreats by 0,40%, Madrid -o.38%. Outside the Eurozone London +0,12%.
Frankfurt -0,6%. the German Ifo data on expectations for the month of June, which came in at 94,2, below the forecasts of 94,6 and the previous reading of 95,3. The collapse of Daimler - 4% brought down the German price list. The group trimmed its earnings outlook for 2019. This year's group margin, before interest and taxes, is expected to be at last year's level, the company said against a previous estimate of "a slight increase ”.
SPREAD TO 247 POINTS, TODAY THE AUCTION OF CTZ AND BTPEI
The Italian secondary falls back in the final, after a positive session. The 2,16-year yield closed at 2,13% from XNUMX% at the start, returning to Friday's closing levels. The shorter maturities suffered, the thirty-year period essentially stable.
The gap between the BTP and Bund rates on the 10-year segment settled at 247 basis points from 243 at the start and 245 at the previous closure.
Operators await this week's month-end auctions, starting today with Ctz and BTPei, tomorrow with Bots and concluding on Thursday with medium-long term bonds: the Treasury will make available to investors between 4,75 and 6 billion euros in medium-long government bonds. In detail, 1,75-2,25 billion Btp will be offered for 5 years July 2024, 2,25-2,75 billion Btp 10 years 2029 and between 750 million and 1 billion Ccteu.
LEONARDO'S FLIGHT CONTINUES, BRINDA CAMPARI
In Piazza Affari the best blue chip was Leonardo +2,68%: jv Space
Alliance, in which the company is a shareholder together with the French Thales is preparing an offer for the Canadian Mda Corporation active in the space and defense sector controlled by the American Maxar with a turnover of about 1 billion dollars.
Campari stands out among the best stocks (+2,5%). Atlantia gains 2,1%, partially recovering from Friday's decline when it lost more than 4%. Equita confirms its 'buy' on the shares, because it believes that the new tariff system will have to be negotiated with the operators.
Funding Telecom Italia resp (+2,2%) below the maximum, in a market that keeps the spread between the two stocks at a minimum, on expectations for the conversion with ordinary bonds, a possible first move after the expected governance agreement between Vivendi and Elliott. Ordinary Tims drop 2,18%.
FCA -0,3% on the eve of the Nissan shareholders' meeting.
WEAK BANKS, BETTER MANAGEMENT
Weak banks held back by low rates. Unicredit leaves 1,66% on the ground, worsening after Reuters wrote that the bank has put a possible offer on Commerzbank on standby.
Asset management is more brilliant: Banca Mediolanum rises by 2,29%, Azimut +0,93%.
SUFFERE TOD'S, BIESSE SHOULDER STRAP
Among the worst stocks Tod's (-5,6%): Credit Suisse cut the Underperform rating from Neutral and the target price to 32 euros from 38 euros.
Biesse (-20%) has launched a profit warning on the 2019 accounts: it sees revenues between 680-690 million and an EBITDA between 62-65 million. Prima Industrie (-4%), Trevi (-4%), Esprinet (-4%) and Ovs (-3%) also lost ground.
Finally, ferment in real estate such as Risanamento (+0,7%) and Aedes (+3,24%), buoyant even before green light to the Winter Olympics for Milan and Cortina in 2026, a possible trigger for a real estate boom.
