America is running again, the dollar as well. Tokyo rebounds +1%, driven by new records of the US currency against the yen: 109, just a whisker from the highs since 27. US listings accelerated their upward run last night after the data on new home sales, strongly growth: Dow Jones +2008%, S&P +0.90% again close to 0,78 thousand points, Nasdaq +2%.
Pushing the markets higher in the afternoon was the data on the sale of new homes in America in August: 504 units (+18%), a result not seen for 22 years. But the performance should have no effect on the Fed's attitude: only 29% of purchases concern first homes, confirming that the income gap is widening between the wealthiest and the rest of the population, these days the main concern of Janet Yellen. Spotlight on tonight on unemployment statistics.
DRAGHI CONFIRMS: LOW RATES, THE PROBLEM IS UNEMPLOYMENT
The march of the dollar also brought relief to the European stock exchanges which, after three consecutive sessions of declines, made significant rebounds: London rose by 0,4%, Paris +1,2%, Frankfurt +0,7%. In Milan, the FtseMib index rose by 1,6% with widespread gains. Piazza Affari was the best stock exchange
The US currency strengthened against the euro, trading at 1,2774, from 1,284 at the previous close. The drop in Germany's Ifo index, which measures business confidence, contributed to depressing the single currency, finishing slightly below economists' expectations in September, in the fifth consecutive month of decline.
Mario Draghi, interviewed by a French radio, reiterated that the real problem of Europe today is unemployment. Hence the confirmation that the central bank's interest rate policy will remain accommodative until inflation rises towards 2%.
In Europe, the best stocks were Raw materials (Stoxx of the sector +2%), Tlc +1,4%, and Oil +1,2%. Brent is traded at 96,99 dollars a barrel, slightly recovering. Eni +2,5%, Saipem +1,8% and Tenaris +1,1% stand out in Milan.
CTZ AUCTION TODAY: STRONG DEMAND EXPECTED
The spread between the BTP and the Bund stopped at 137 basis points and the yield on the domestic 2,38-year bond fell to 4,25%. In the hunt for yield involving Eurozone bonds, Italian government bonds are still well positioned and boast a much greater appeal than the majority of other European government bonds. A situation that bodes well for the outcome of the month-end auctions. We begin this morning with the offer of the third tranche of Ctz and BTp-i for a maximum of XNUMX billion.
Robust demand is expected even if, at least for the Ctz, a new all-time low is not expected. On the short-term side, yields rose slightly from the levels of August when the CTZ was placed in the first tranche at 0,326 per cent. On the secondary market, the Certificate was traded at 0,47 percent. The Treasury also announced that at the September 29 auction it will offer from 2,5 to 3 billion Ccteu, from 2 to 2,5 billion Btp over 5 years, from 2,5 to 3 billion Btp ten years.
TELECOM, THE BOD ON ARGENTINA POSTPONED TO TOMORROW
Telecom Italia is in great turmoil +2,7% thanks to the South American dossiers. Today, first of all, the deadline for the postponement granted by the Italian group to Fintech to conclude the purchase of Telecom Argentina expires. The deal risks falling apart because the buying group is in a state of financial stress. Fintech would thus have proposed to Telecom a sort of "temporary sale" which will be evaluated by the Board of Directors of the Italian group already scheduled for today but which will be postponed until tomorrow morning, thus leaving the Argentine authorities all the time necessary to make a decision on the possible sale of the subsidiary Telecom Argentina.
Telecom Argentina had been valued at 960 million dollars. To compensate for the failed or delayed sale, the Italian group is accelerating the dossier of Italian transmission towers, with the placement on the Stock Exchange of 50% of the capital (100% is valued at 1 billion euros) to be built in 2015. Equal attention raises the Brazil dossier. At the end of the month, the auction for the assignment of radio frequencies gets underway: Oi, one of the operators active in the country, is not participating in the tender, a signal interpreted by the market as the start of a consolidation process, a scenario that could lead to the dismemberment, with subsequent sale of assets, of Tim Brasil.
MARCHIONNE: LEAVE RENZI ALONE, CNH, MEGASALE TO GERMAN FS
Cnh Industrial is in sixth gear, the best title in the main basket with an increase of +3,62% The Agnelli group company that manufactures trucks, buses, tractors and earthmoving equipment, has signed an agreement in Germany for the supply 400 buses with DB Fhurpark Service, the suburban transport company of Deutsche Bahn. The contract with the German railways includes an option for the delivery of another 310 buses in the two-year period 2017-2018.
Fiat also stands out +2,1%, one of Kairos Partners' favorite stocks. “I hope for the good of Italy that Matteo Renzi is left in peace and let him work. I don't see any alternatives”, Sergio Marchionne said yesterday as he left the work of the Council of Foreign Realtions in New York. “The country – he added – must be rebuilt, on a different basis. We have to believe in the future. I've done it in my small way, but it's extremely painful to take apart and rebuild a system and not everyone understands it. I hope you don't give up."
A strong surrender of position on the eve of Renzi's visit to Detroit, particularly significant after the editorial by the outgoing editor of Corriere della Sera highly critical of the prime minister. Slow closing for Finmeccanica +0,07 on the eve of the board meeting which should take another step forward in the plan to transform the subsidiaries into divisions, but in tomorrow's meeting the non-binding offers for Ansaldo Sts +0,46% could also be evaluated and Breda.
CREDIT, THE UNICREDIT- SANTANDER AXIS IS LIKED IN PIONEER
The banks are on the rise: MontePaschi has achieved a rise of 2,4%. Rain of positive judgments for Unicredit +1,4% after the decision to sell shares of Pioneer. The CEO Federico Ghizzoni explained that the choice fell on "an industrial project with which we want to create a company with important and global dimensions". The shareholding structure will be equal, namely one third Unicredit, one third Santander and one third the two American funds (Warburg Pincus and General Atlantic) already present in Santander Asset Management.
"At the end - said Ghizzoni - as always in this type of operation, in x years the funds will be released and there will be an IPO and it will remain a listed company with equal shareholders". Unicredit's capital benefit will be 20-25 basis points.
Understanding +1,8%. BancoPopolare closed with a loss of 1,8%, Mediobanca -1,2%. Public Sale Milan +2,8%. Generali gains 1,6%, UnipolSai -0,5%.
JIMMY CHOO'S IPO GIVES TOD'S A HAND
Among the luxury stocks Yoox loses 2,9%, Moncler -1%. Morgan Stanley Investment Management fell to 1,853% from 3,147% on December 17 last year. Tod's recovers (+2,5%) after two sessions of reductions. Jimmy Choo's upcoming listing in London has brought attention back to the high-end footwear sector. Luxottica +2,9%. Finally, Wdf is up 0,56% after the United Arab Emirates government approved a 32 billion dollar investment for the expansion of Dubai's Al Maktoum International airport.
