And three. The Federal Reserve has once again taken the field to guarantee liquidity to the bond market with a new injection of 75 billion dollars and thus cope with the peak demands that have pushed the Fed funds upwards. It is difficult to immediately assess the size and depth of the phenomenon amplified by the needs of the US Treasury. But, in general, it should be noted that the Central Bank has returned to providing liquidity with Quantitative Easing operations. This too, together with the dovish indications coming from the central banks (the only exception is Norway which raised rates), reassured the markets.
THE FED IN THE FIELD ON THE MARKET, TOWARDS A NEW CUT
Wall Street is today hunting for a new historical record, already touched yesterday: the S&P 500 index stopped at 3.006,79, less than one point from the new high. The Dow Jones is down slightly. NASDAQ +0,07%.
Microsoft goes up (+1,8%), supported by the announcement of a buyback of 40 billion but Apple -0,8%.
The market at 50% expects another rate cut in October.
CHINA/USA, THE NEGOTIATIONS COME BACK TO LIFE
For now, the central bank dossier has been archived and the negotiations between China and the United States are once again topical.
The preparatory talks for the official meeting in early October will end today in Washington, the first after two months of interruption. Reuters wrote that the two delegations are discussing above all on the exchange of agricultural products, while the thorny issue of patent infringement, the one where the gaps are wider, would have been shelved.
In the meantime, the stock exchanges of Asia are almost all on the rise. The Japanese Stock Exchange is up 0,5%, that of Hong Kong is flat, that of South Korea gains 0,4%. The CSI 300 index of the Shanghai and Shenzhen stock markets rose by 0,2%.
BEIJING CUTS AGAIN, BRENT IN RECOVERY
The main currencies of Asia are slightly appreciated. The Chinese yuan trades at 7,087 against the dollar. The People's Bank of China tonight announced a cut in its key interest rate by 5 basis points to 4,20%.
Brent oil is up 0,3% to 64,6 dollars a barrel, +1,2% yesterday.
THE STERLING FALLS TO THE MINUTES SINCE MAY
European stock futures are flat before the open this morning.
The euro/dollar exchange rate rose modestly to 1,105. The euro pound moved to its lowest level since May to hit 0,881 overnight.
The Prime Minister of Ireland, Leo Varadkar, has announced a new meeting with Boris Johnson to address the issue of the Northern Ireland border, the boulder blocking a Brexit deal.
CREDIT SUISSE WILL CHARGE DEPOSIT TO LARGE CUSTOMERS
The rate cut practiced by the Fed prolonged the effects of the ECB maneuver in Europe on the day in which the new loans disbursed by the central bank to institutions began. Requests from 28 companies arrived in Frankfurt (against 474 in the last operation of this type) for 3,4 billion euros, much less than the forecasts which fluctuated between 20 and 100 billion despite the operation envisaging a further discount to the soft conditions for loans beyond a certain threshold, being able to go up to -0,50%, which is the new rate on deposits. More than the supply of new money, the institutions are worried about the too generous conditions of the offer. The confirmation came with the new measures presented by the National Bank of Switzerland to counter the effects of sub-zero rates (today -0,75%). Meanwhile, Bloomberg reports that Crédit Suisse is preparing to transfer negative interest to customers with deposits of over one million francs. In this context, the equity markets find the necessary oxygen to resume the upward path.
THE OECD EXPECTS ZERO GROWTH FOR ITALY
Piazza Affari +0,82% is back beyond the threshold of 22 thousand points at 22.82. For Italy, the OECD expects growth of zero in 2019 (unchanged compared to May) and 0,4% in 2020 (-0,2 points on the previous Outlook). Data revised downwards also for the euro area, with growth of 1% in 2019 (-0,1 points compared to May) and 1,1% in 2020 (-0,4 points compared to May).
The other price lists were also positive: Paris +0,68 outpaced by Madrid +1,14%.
BERLIN TODAY LAUNCHES ENVIRONMENTAL INVESTMENTS
Frankfurt (+0,55%) today awaits the launch of green bonds issued by the Berlin government: up to 100 billion through a mechanism devised to prevent loans from being counted in the federal budget, thus breaking the "zero debt" constraint. A fate very different from the Italian incentives stopped by the Treasury due to hedging problems.
ROME RAISES THE GOLDEN POWER ON PIAZZA AFFARI
London +0,61%. The Bank of England left rates unchanged but for the first time detailed the damage that would result from a postponement of London's farewell from the bloc, after parliament voted to ask Prime Minister Boris Johnson to postpone Brexit if it fails to reach an understanding with Brussels shortly.
The Council of Ministers has approved a decree-law with measures to protect strategic infrastructures such as Borsa Italiana, The measure makes the golden power effective on Piazza Affari, which is part of the London Stock Exchange, the subject of an unsolicited takeover bid by the Hong Kong Exchange.
Session with little movement for government bonds. On the secondary, the Italian 0,88-year rate recovered slightly to 139% and the spread between the BTP and the Bund widened to 0,81 basis points (+XNUMX%).
Data from the Bank of Italy confirm the summer run by investors for returns guaranteed by the Treasury: in July, foreign investors acquired Italian bonds for 30,1 billion, of which 19,1 billion concerned BTPs and CCTs.
MEDIOBANCA, DEL VECCHIO AIMS AT GEVORNANCE
The banks were the engine of the increases in Piazza Affari. The rebounds of Ubi (+4,58%), Bper (+4,37%) and Unicredit and Banca Bpm (both +2,27%) were notable. Mediobanca is up but also down (+1,19%). Generali +2,2%, the true object of Leonardo Del Vecchio's desires. According to rumors, Leonardo Del Vecchio is aiming for 10% of Piazzetta Cuccia, starting from the current 6,94%, in order to enter the management of the company. Probable presentation of its own list of directors, appreciated by Unicredit and the Benetton family.
D DAY FOR CARIGE, PENINSULA SUPPORTS MEDIASET
Decisive day for Carige, hanging on the decisions of the Malacalza family. If the main shareholder says no in the meeting to the rescue plan agreed with Frankfurt, all that will remain is an intervention on the model of the one adopted for the Veneto banks. This time the white knight would be Unicredit.
After the target ritual of the last few days, both Moncler (+2,3%) and Prysmian (+1,63%) recovered, which successfully completed the underwater laying operations for the interconnections between the islands of Evia and Andros and Tinos.
In the stable of securities in Tip's portfolio, Gianni Tamburi's finance company, shines Oviesse (+8,01%) on the eve of the meeting on the accounts.
Mediaset stable at 2,74 euros, close to the withdrawal values. The Peninsula fund intervened to help the cross-border merger operation, jeopardized by Vivendi's no, pledging to purchase up to a maximum of 355 million shares (24,9%) of the Dutch newco MediaforEurope
Money instead Telecom Italia (+2,12%): the Brazilian subsidiary is negotiating the purchase of the network of the competitor Oì.
VOLA AUTOGRILL, ELECTRIC SHOCK FOR FCA
Brilla Autogrill (+4,92%): Equita estimates that revenues for July-August rose to approximately 926 million euro, up by
about 4% and writes that the shares have a lower price-to-earnings ratio than their competitors.
Fiat Chrysler (+0,08%) regardless of the problems that hold back the launch of green incentives, accelerates on the road to electric. Yesterday an agreement was signed with Terna -0,28% to test 'vehicle-to-grid' (V700G) technology on a fleet of 2 cars, which will allow the electricity grid to exploit the energy stored in the cars' batteries and cope with peaks in demand. The memorandum with Terna provides for the testing of a technology that allows electric vehicles to interact with the grid, through the charging stations. The V2G infrastructure will be built at the FCA Mirafiori plant.
