Taurus collects records at all latitudes. This morning the Asia Pacific index (+0,57%) rose to its highest level since 2007, in line with the new historic record on Wall Street of the S&P 500 index: 2,488,11. The Dow Jones does even better (+1,19%), again above 22 points. The Brazilian Stock Exchange also celebrates a new record. The Bovespa index of San Paolo gained 1,7% due to the bet on the privatization plan. Milan was no exception. Also in Piazza Affari the Ftse Mib index rose above 22 thousand points, thus returning to the levels of December two years ago, also thanks to strongly accelerating data on industrial production. Finally, futures on European stock exchanges anticipate a 0,3% increase for today.
In short, the rise is in good health, after overcoming the hurricanes without too much damage while North Korea, for now, is not too scary: the sanctions approved last night by the UN are milder than expected. Thus, the pressure on safe-haven assets eased while the dollar regained its share (1,1958 against the euro). In this ideal setting for business, the markets are preparing to witness a bloodless conflict: tonight Apple will reveal the secrets of the iPhone 8, its thousand-dollar smartphone. On the eve of Samsung's enemies let it be known that reservations for the Galaxy 8, presented at the end of August, are booming: 2,5 times better than the launches of previous models.
Stock market reports nice stable after the storm. The Nikkei index is on the rise in Tokyo (+1%). Both the Korean Kospi index and the Shanghai index also rose (+0,2%). On the other hand, the yuan fell after the measures taken by the authorities to curb the currency's appreciation, which reached a 21-month high against the dollar on Friday (6,5432). Authorization for Western investment funds to sell shares to Chinese clients appears imminent.
Free-range financial markets in New York: Hurricane Irma won't weigh much on the accounts of insurance companies. Universal Insurance climbed 12%, Heritage Insurance even 21%. Hence the leap forward in the financial sector (+1,74), driven by JP Morgan (+2,18%). On Wall Street, yesterday engaged in celebrating the victims of the tragedy of 11 September 2001, the Dow Jones index closed at 22,057 points, Nasdaq +1,13%.
The expectation for the presentation of the new Apple smartphone is growing (+1,8%). Analysts are divided between the optimists, convinced that the new features offered by the iPhone 8 (see 3D view for the gold version) will push the Apple towards the milestone of a trillion capitalization. Skeptics doubt that there is much room for a thousand-dollar smartphone.
Teva flies (+19%) after the changing of the guard at the top of the leader of generic drugs: the new CEO is Kare Schultz. Tesla also made a big splash (+5,91%) on the wave of the news that China is about to outlaw vehicles with traditional engines.
Oil contrasted: the WTI advanced by 50 cents to 48,04 dollars a barrel, Brent stable at 53,78 dollars. US refineries have reopened in the Gulf of Mexico and there is expectation of an extension of the production cut, sponsored by Saudi Arabia.
Highlights in Piazza Affari Saipem (+3,3%) after HSBC started coverage with a Buy recommendation and a target price of 4,4 euros. According to the broker, the “deeply restructured” company will generate $1,1 billion in free cash flow over the period 2017-2021, which is more than 30% of its current market capitalization. Eni +0,3%: the group has confirmed that it is being investigated as a legal entity in an investigation conducted by the Milan prosecutor's office which hypothesizes the crime of international corruption as part of the agreements signed in Congo with the Ministry of Hydrocarbons in the years since 2013 to 2015.
BUSINESS CENTER RETURNS ABOVE 22 THOUSAND
Piazza Affari wins the sprint of European lists at the photo finish at the end of the most brilliant session of the year, "doped" by the slight decline against the dollar (1,198, below 1,20). In Milan, the Ftse Mib index, thanks to an increase of 1,64%, exceeded 22 points, setting a new high since December 22.134 at 2015. The index was also driven by the excellent performance of industrial production: +4,4% compared to July 2016, a result higher than expected and boding well for third quarter GDP.
However, the best Stock Exchange was Madrid (+1,91%), despite the growth in industrial production (+1,9%) lower than estimates and the challenge coming from Catalonia. Yesterday 800 people (less than two years ago) marched in Barcelona to support independence from Spain. Today the Constitutional Court will evaluate the legitimacy of the referendum.
Frankfurt (+1,39%) and Paris (+1,24%) are also on positive ground. Outside the Eurozone London +0,49% on the eve of tomorrow's delicate meeting of the Bank of England. Last night Parliament approved the Repeat Bill, the law that cancels the supremacy of Community law in the United Kingdom.
ECB ADVISORS PREPARE QE REDUCTION
The ECB is preparing markets to phase out QE ahead of its October 26 meeting. As many as six advisers of the European Central Bank have made statements in this sense. They are Sabine Lautenschlaeger, Yves Mersch and Benoit Coeurè and the governors of the national central banks of Holland, Austria and Estonia.
"The economy in the euro area is doing better and there are conditions for inflation to recover and move steadily towards our target," said Germany's Lautenschlaeger in a written contribution to the Eurofi financial forum, which will take place in Tallinn from 13 to 15 September. “We must be prepared to take difficult decisions at the right time” concluded Coeurè, noting that the ECB's monetary policy will in any case remain accommodative for a longer period, minimizing the brake on inflation by the recent euro rally.
Mersch, Estonian Governor Ardo Hansson and Austrian colleague Ewald Nowotny stressed that the stimulus reduction will be gradual. Dutch central governor Klaas Knot instead emphasized the risk that easy money could trigger bubbles and unscrupulous behavior on the financial markets.
BOT, YIELD FALLING AHEAD OF THE AUCTION
The bond market discounted the effects of forthcoming Treasury auctions. The auction session starts today with the offer of 12-month BOTs for 6,5 billion (against 6,75 for maturing bills). On the Mts gray market, the stock trades at a yield of -0,317%, above the level of the mid-August auction (-0,337%), which had already marked an increase compared to the historic low in July (-0,352%).
The new seven-year Btp November 2024, coupon 1,45% in auction tomorrow, is also trading on the gray market: the yield is 1,51%, below the 1,57% of the last seven-year placement in mid-July (on offer c 'was the old title May 2024). In addition to the new seven-year offer, the medium/long-term offer also includes the reopening of 3-year and 20-year BTPs (June 2020 and September 2036) for a total amount of up to 8 billion. After a low at 161 basis points at the end of the morning, the Btp/Bund spread started to rise again to 165. The Italian ten-year rate fluctuated between 1,94% and 1,99%.
THE SPREAD WITH MADRID IS REDUCING, AUSTRIA LAUNCHES A 100-YEAR BOND
Despite the slowdown in the second part of the session, the Italian paper continues to outperform the Spanish one, weighed down by the tensions related to the referendum in Catalonia. The spread between 2-year BTPs and Bonos closed down 53bps to 100, the lowest since mid-June. Italian auctions aside, the Austrian Treasury has mandated the banks to manage the issue of a new five-year and explore the possibility of a XNUMX-year placement.
The Austrian offer could already be added tomorrow to the German indexed auction on the agenda (500 million in April 2046), while on Thursday Ireland will be on the market with maturities of 2026 and 2037 for a total of one billion.
FINCANTIERI +4,8%: AIR OF PEACE BETWEEN ROME AND PARIS
There is still no agreement on Fincantieri and Stx Saint Nazaire, but the trip to Rome of French Economy Minister Bruno Le Maire has not been fruitless. “Constructive meeting in Rome on the Stx dossier. Our common goal: an agreement between France and Italy for the September 27 summit,” Le Maire tweeted at the end. The declarations of Padoan and Calenda are on the same note. The French government has proposed extending the industrial alliance between Fincantieri and STX to military shipbuilding, also involving Naval Group, the public shipbuilding company that already collaborates, in some areas, with the Italian group. It remains to be seen whether the draft presented yesterday by Le Maire addressed the main issue of the alliance, still unresolved, and which almost led to the breakup: that of the command bridge.
Meanwhile, yesterday Fincantieri achieved an increase of 4,82% on the wave of the contract, worth 310 million dollars, signed with Silversea Cruises for the construction of a new ultra-luxury cruise ship.
UNIPOL SUPERSTAR, EXOR FLIES ON THE WINGS OF PARTNER RE
The insurance industry breathes a sigh of relief after the loss of power of Hurricane Irma, which arrived in South Florida. The damage caused by the devastation has so far been less serious than estimated last week, when winds over 200 kilometers per hour. Yesterday afternoon the northern area of Florida was beaten by winds in the order of 100 kilometers per hour.
The European sector index closed up 2,1%. Munich Re advanced by 4,07%, Swiss re +4,26%. In Italy, Unipol shines in particular (+6,7%), the best Italian blue chip, which recovers the ground lost in the last quarter. Mediobanca changes its mind on the holding of financial and insurance activities, the recommendation rises to Outperform, from Neutral. The analyst Gianluca Ferrari brought the target price to 4,88 euros, from 4,30 euros. Unipolsai (+3,15%) and Generali (+3,14%) are also well bought.
The good performance of the reinsurance sector also benefits Exor (+4,1%), which controls 100% of Partner re. In the Agnelli Ferrari stable, Ferrari recovers 2% to 92,9 euros after the slide on Friday. Fiat Chrysler after a morning rally, gave way and closed with a slight gain of 0,6%. Widespread increases for banks: Unicredit +2,6%, Intesa +1,4%, Banco Bpm +2,7%, Ubi +3,4%.
PRADA'S THUD DOESN'T STOP LUXURY, ANTITRUST IS BREAKING LUXOTTICA- ESSILOR
Yesterday's sharp fall after Prada's results (-13,5% on the Hong Kong Stock Exchange, today the stock recovers around 4%) did not weigh on luxury sector stocks: Ferragamo +1,1%, Yoox +2,4 .4% (today compared with analysts) and Tod's +1,2%. New record also for Moncler (+XNUMX%).
Little movement Luxottica (+0,30%). EU antitrust authorities are meeting with Luxottica and Essilor this week to express concerns over the €46 billion merger between the two companies, according to a source familiar with the situation. The European Commission wants concessions to be made by the two groups before giving the green light to the marriage.
In the spotlight at Aim, Fedon shares rose by 13% to 14,15 euros with 11.200 units traded. The leading company in the production of eyewear and lifestyle cases (1.500 employees) has announced that it has completed the voluntary sale procedure, launched in France on 22 August last, in the context of which requests are presented for the sale of 3.439 shares equal to 0,18% of the share capital. Fedon shares will therefore be excluded from trading on Euronext Paris and concentrated on Piazza Affari.
HISTORICAL RECORDS ALSO FOR ATLANTIA AND PRYSMIAN
Runs Stm (+1,4%) on the eve of the launch of the iPhone 8. Prysmian +2,8% marked the new all-time high. Bene Buzzi (+1,6%): Barclays has started the coverage with an Outperform rating and a target price of 25 euro.
Telecom Italia rises by 0,9%. Yesterday Paola Maiorana resigned from the office of statutory auditor, due to "arrivaling mandatory professional commitments". She was replaced by Gabriella Chersicla, auditor and chartered accountant of Milan, alternate auditor on the same list in which Maiorana was nominated.
Atlantia +1,1% set a new all-time high at 27,44 euros after press rumors further dismissed the hypothesis of a counter-offer on Abertis.
